We present new evidence showing that fiscal austerity strengthens support for redistribution, especially for the relatively well-off. Our theoretical model proposes two mechanisms to explain this heterogeneity in support for redistribution: "altruism" and "appreciation". We test our theoretical...

The 'starving the beast' hypothesis claims that tax cuts lead to lower public spending, rather than higher debt levels and higher taxes in the future. This paper uses the institutional setting of German fiscal federalism to its advantage in order to explore how fiscal policy reacts to exogenous...

In August 2009 the Congressional Budget Offi ce warned that the budget was on an unsustainable path. Preventing federal debt from growing faster than the economy over the long-run requires large increases in revenues and/or decreases in spending. We explore, using the Urban-Brookings Tax Policy...

In this paper we aim to discuss the strengths and weaknesses of the fiscal consolidation package adopted recently by the Italian Government in order to achieve a balanced budget by 2013. Revenues are forecasted to increase by more than 3.3 GDP percentage points; these stem mostly from indirect...

Programs to reduce employers' social security contributions are being widely discussed in both the political arena and academic forums as tools for promoting economic growth and boosting employment. This paper employs a computable general equilibrium model to assess the economic impact on the...

This paper uses a dynamic computable general equilibrium model (CGE) to analyze the macroeconomic and redistributive effects of replacing turnover and financial transaction taxes in Brazil by a consumption tax. In order to approximate Brazil`s compliance with its fiscal adjustment targets, the...

In August 2009 the Congressional Budget Offi ce warned that the budget was on an unsustainable path. Preventing federal debt from growing faster than the economy over the long-run requires large increases in revenues and/or decreases in spending. We explore, using the Urban-Brookings Tax Policy...

In this paper we aim to discuss the strengths and weaknesses of the fiscal consolidation package adopted recently by the Italian Government in order to achieve a balanced budget by 2013. Revenues are forecasted to increase by more than 3.3 GDP percentage points; these stem mostly from indirect...

Nach der Bundestagswahl schlägt die Stunde der finanzpolitischen Wahrheit. Wer auch immer die nächste Bundesregierung stellt: Der Kassensturz nach der Wahl wird zeigen, dass kaum noch finanzpolitischer Handlungsspielraum besteht. Die öffentlichen Haushalte haben sich im Zuge der Rezession...

Die zentrale finanzpolitische Aufgabe der kommenden Jahre wird die Konsolidierung der öffentlichen Haushalte sein. Auch nach Bewältigung der Rezession werden weiterhin "strukturelle" Defizite in einer Größenordnung von drei bis vier Prozent des Bruttoinlandsprodukts bestehen bleiben....