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fail to reduce unemployment when they are combined with compensation by revenues from indirect taxes; whereas compensation … through increased personal income taxes shows positive results on unemployment in exchange for decreases in private …
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The literature on fiscal multipliers finds that spending-based fiscal consolidations tend to have more benign macro-economic consequences than revenue-based consolidations. By directly comparing ex-post data with consolidation plans, we present evidence of a systematically weaker follow-up of...
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This paper estimates the impact of fiscal consolidation on unemployment and job market flows across EU countries using … show that the impact of fiscal consolidation on cyclical unemployment is temporary and significant mostly for expenditure …-finding rate corresponds to a longer average duration of unemployment spells, fiscal policy shocks also tend to have a stronger …
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