We investigate the behavior of the unemployment rate after a government expenditure shock and present evidence that the group of asset-holding households reacts very different from the group of liquidity-constrained consumers. Our findings suggest that the unemployment rate is likely to decrease...

We provide a systematic analysis of fiscal consolidation in a dynamic general equilibrium model with a detailed government sector and a share of credit-constrained households. We simulate permanent cuts in government consumption, government investment, and transfer payments as well as permanent...

Numerical fiscal rules are implemented to counterbalance the deficit bias in budgetary policy. Over the recent years, an increasing number of studies try to test the actual effectiveness of fiscal rules. This meta-analysis condenses the existing evidence from different regional and federal...

From to beginning of year 2002, the Spanish Autonomous Communities (CC. AA.) fiscal performance is conditioned by a new legal framework compounded from the financial agreement and the legislation on budget stability. This new framework implies a change in the CC. AA. fiscal behaviour. Are the...

Whenever a central government faces a sub-unit in financial distress, the unpleasant question arises of whether to assist the unit or not. On the one hand, resisting to bail out the unit may lead to default or bankruptcy, which could be very costly both economically and politically. On the other...

The consequences of ageing populations for federal and state fiscal policies are, due to the research efforts of the last two decades, well known. However, it is rather less well known how the municipal level is affected. Therefore, by using a modification of the sustainability definition...

In this paper, we propose a probabilistic voter model that rationalizes the ineff cient use of labor input in municipality-owned enterprises. Our focus is on the relationship between absolute as well as relative ineff ciency measures and the size of the municipality in which public rms operate....

The tax auditing parameters have scarcely been analyzed by the literature as relevant policy-making instruments; however the enforcement strategies are crucial elements of the tax burden. In this paper we show that in a federal framework the tax auditing policies could represent additional tools...

The literature on horizontal tax interdependencies offered limited attention to the interactions on administrative policies although they play an important role in determining the total tax revenues collected. The incentive for sub-central tax authorities to share relevant taxpayer-specific...