This paper analyzes the performative impact of the European Commission's model for estimating 'potential output', which is used as a yardstick for measuring the 'structural budget balance' of EU countries and, hence, is crucial for coordinating European fiscal policies. In pre-crisis years,...

This paper analyses the short-run effects of fiscal consolidation measures on economic activity in the euro area during the euro crisis. It presents new econometric estimates on the link between cumulative GDP growth and fiscal austerity measures during 2011-2013. The main empirical finding is...

Using an annual data set covering 17 OECD countries over the time period 1978-2013, this paper analyses the dynamic effects of fiscal consolidation episodes on income inequality in the short and medium run. By estimating impulse response functions from local projections, we find that fiscal...

Using an annual data set covering 17 OECD countries over the time period 1978-2013, this paper analyzes the dynamic effects of fiscal consolidation episodes on income inequality in the short- and medium-run. By estimating impulse response functions from local projections, we find that fiscal...