The aim of this paper is twofold. First, for West Germany, France, Italy and US, we econometrically select within a SVAR model some fiscal policy regimes, i.e. a u0094set of rulesu0094 for the implementation of fiscal policies. Second, we identify the fiscal policy shocks related to different...

Italy's problems are primarily structural; the current government is thus exploring more radical reform programmes, such as labour market reform and liberalisation. Compliance with the measures introduced towards achieving a balanced budget and reducing the public debt is a prerequisite to...