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Fiscal Institutions and Public Spending Volatility in Europe

Albuquerque, Bruno - 2021

fiscal institutions on public spending volatility for a panel of 23 EU countries over the 1980–2007 period. The dependent … variable is the volatility of discretionary fiscal policy, which does not represent reactions to changes in economic conditions …. Our baseline results thus give support to the strengthening of institutions to deal with excessive levels of discretion …

Persistent link: https://www.econbiz.de/10013231899

The deterioration of the public spending mix during the global financial crisis : insights from new indicators

Bloch, Debra; Fournier, Jean-Marc - 2018

New indicators measuring the effects of public spending on inclusive growth have been constructed using recent empirical work by Fournier and Johansson (2016) and a recent public finance dataset (Bloch et al., 2016). A first set of indicators combines information on the mix of public spending....

Persistent link: https://www.econbiz.de/10011914165

The Misalignment of Fiscal Multipliers in Italian Regions

Lucidi, Francesco Simone - 2021

By accounting for the structural heterogeneity between northern and southern economies, this paper estimates fiscal multipliers resulting from shocks to current public expenditure, total public revenues and public investment in Italian regions. The estimation is carried out by estimating a panel...

Persistent link: https://www.econbiz.de/10013312350

Long-run effects of austerity

Martins, Guilherme Klein - 2022

This paper provides evidence that austerity shocks have long-run negative effects on GDP. Besides addressing the important gap in the growing fiscal research regarding the short time horizon of the estimations, this paper analyzes two other important assumptions made in the literature regarding...

Persistent link: https://www.econbiz.de/10014229776

Government spending shocks, sovereign risk and the exchange rate regime

Bonam, Dennis; Lukkezen, Jasper - 2013

Conventional wisdom teaches that the output response upon a fiscal expansion is higher under fixed than floating exchange rates for a small open economy. We analyse the effects of fiscal expansions using a New Keynesian model and find that this result reverses in times of sovereign default risk....

Persistent link: https://www.econbiz.de/10010227296

Do expectations matter? : reassessing the effect of government spending on key macroeconomic variables in Germany

Gründler, Klaus; Sauerhammer, Sarah - 2016

This paper investigates the effects of government spending on key macroeconomic variables in Germany. It contributes to the ongoing debate on how to properly identify exogenous fiscal shocks in the data and on whether or not the government should intervene in the business cycle. Following Ramey...

Persistent link: https://www.econbiz.de/10011525541

Fiscal policy in a Real-Business-Cycle model with labor-intensive government services and endogenous public sector wages and hours

Vasilev, Aleksandar - 2013

Motivated by the high public employment, and the public wage premia observed in Europe, a Real-Business-Cycle model, calibrated to German data (1970-2007), is set up with a richer government spending side, and an endogenous private-public sector labor choice. To illustrate the effects of fiscal...

Persistent link: https://www.econbiz.de/10011498734

Optimal government spending and unemployment

Linnemann, Ludger; Schabert, Andreas - 2008 - This version: February 29, 2008

volatility; iv) is qualitatively unaltered in a sticky price version with jointly optimal monetary and fiscal policy. …

Persistent link: https://www.econbiz.de/10011374417

Macroeconomic effects of government spending : the Great Recession was (really) different

Klein, Mathias; Linnemann, Ludger - 2018

We estimate the effect of government spending shocks on the US economy with a time-varying parameter vector autoregression. The recent Great Recession period appears to be characterized by uniquely large impulse responses of output to fiscal shocks. Moreover, the particularity of this period is...

Persistent link: https://www.econbiz.de/10011890166

Government spending and durable goods

Boehm, Christoph E. - 2016

This paper shows that the fiscal multiplier for purchases of durable and investment goods is very small - much smaller than the multiplier for nondurable goods. Standard models predict small durables multipliers because private sector purchases of durable goods are highly intertemporally...

Persistent link: https://www.econbiz.de/10011573302