Based on a panel data model this paper investigates whether the effects of fiscal policy on national saving in Europe … national saving responds nonlinearly to fiscal policy when a large and persistent consolidation is undertaken. I show that …

Based on a panel data model this paper investigates whether the effects of fiscal policy on national saving in Europe … national saving responds nonlinearly to fiscal policy when a large and persistent consolidation is undertaken. I show that …

capital stock and a fall in employment. Cutting public employment or the income tax rate leads, in contrast, to a lower wage … welfare state are handed back via a lower income tax rate rather than a lump-sum subsidy, both cutting public employment and … cutting public spending on private goods induce an investment boom. Making the tax system less progressive by cutting tax …

employment or the labour income tax rate leads, in contrast, to a lower wage, a higher interest rate and a higher capital stock …. Employment rises on impact. If the extra revenues of rolling back the welfare state are handed back via a lower tax rate rather … boom. Making the tax system less progressive by cutting tax credits and the labour income tax rate induces an investment …

capital stock and a fall in employment. Cutting public employment or the income tax rate leads, in contrast, to a lower wage … welfare state are handed back via a lower income tax rate rather than a lump-sum subsidy, both cutting public employment and … cutting public spending on private goods induce an investment boom. Making the tax system less progressive by cutting tax …

government prefers to repay its debt rather than default -- larger. By announcing a high tax rate at the beginning of the period …, the government ensures that tax revenue will be high enough to service sovereign debt becoming due, which deters panics by …

Debt-financed fiscal stimulus programmes directly stimulate aggregate demand through government expenditure or tax cuts …

variability of fiscal balances. Asset prices affect fiscal balances via capital gains and turnover related taxes, and via wealth …