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The paper analyses the EU fiscal rules from a political economy perspective and derives some policy lessons. Following a literature survey, the paper stresses the importance of appropriate incentives for rule compliance in an environment where national fiscal sovereignty precludes the option of...
Persistent link: https://www.econbiz.de/10009639482
is assumed to have a smaller discount factor than the private sector. Due to the absence of lump-sum taxation, debt …
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identify the fiscal policy shocks related to different categories of expenditure and taxation, and simulate their ex0Bects on … expenditure while a clear-cut distinction between spending and taxation regimes is not found in the US. Both shocks on government … spending and taxation generate keynesian responses of output, although fiscal multipliers are quite low (output reacts by 0 …
Persistent link: https://www.econbiz.de/10009635887
In this paper we assess the importance given in capital markets to the credibility of the European fiscal framework. We evaluate to which extent relevant fiscal policy events taking place in the course of 2002 produced a reaction in the long-term bond segment of the capital markets. Firstly, we...
Persistent link: https://www.econbiz.de/10009636526
This paper provides new evidence on the effects of government spending shocks and the fiscal transmission mechanism in the euro area for the period 1980-2008. Our contribution is two-fold. First, we investigate changes in the macroeconomic impact of government spending shocks using time-varying...
Persistent link: https://www.econbiz.de/10009640321
We analyse the impact of fiscal policy shocks in the euro area as a whole, using a newly available quarterly dataset of fiscal variables for the period 1981-2007. To allow for comparability with previous results on euro area countries and the US, we use a standard structural VAR framework, and...
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