This paper studies how distributional and electoral concerns shape sovereign default incentives within a quantitative model of sovereign debt with heterogeneous agents and non-linear income taxation. The small open economy is characterized by a two-party system in which the left-wing party has a...

Despite sustained efforts made in recent years to rein in budget deficits, a majority of OECD countries still face substantial public finance consolidation needs. While essential to avoid the disruption and large costs ultimately associated with unsustainable public finances, fiscal...

Despite sustained efforts made in recent years to rein in budget deficits, a majority of OECD countries still face substantial fiscal consolidation needs. The choices made about which spending areas to curtail and which taxes to hike will have implications for near-term activity and long-term...

Despite sustained efforts made in recent years to rein in budget deficits, a majority of OECD countries still face substantial public finance consolidation needs moving forward, owing to the legacy of debt accumulation before the crisis, and to the role played by fiscal policy in rescuing the...

After the 2009 global recession, many papers identified a non-linear inverted U-shaped relationship between economic growth and sovereign debt. However, their results are mixed regarding the exact turning point and, recently, the direction of its causality. According the traditional view, we...

We build a dynamic general equilibrium model with heterogeneous households, namely Rich and Poor, and capital skill complementarity structure in the production function, to study aggregate and distributional implications of fiscal consolidation policies when the government uses a rich set of...

The dissertation elaborates on topics that are related to (i) intergenerational transfers of wealth and to (ii) how government ideology and elections influence outcomes (income inequality and budget consolidation) and political processes (fiscal planning and policy advice). The dissertation...

The dissertation elaborates on topics that are related to (i) intergenerational transfers of wealth and to (ii) how government ideology and elections influence outcomes (income inequality and budget consolidation) and political processes (fiscal planning and policy advice). The dissertation...

Why do Scandinavian countries perform better in terms of environmental protection than other European Union countries? In this paper, we explore the hypothesis that societies characterised by low-income inequality (such as the Nordic European countries) generate political-economic equilibria...