The conventional wisdom is (i) that fiscal austerity was the main culprit for the recessions experienced by many countries, especially in Europe, since 2010 and (ii) that this round of fiscal consolidation was much more costly than past ones. The contribution of this paper is a clarification of...

This paper shows how the richer frequency and variety of fiscal policy shocks available in an international sample can be analyzed recognizing the heterogeneity that exists across different countries. The main conclusion of our empirical analysis is that the question "what is the fiscal policy...

This paper argues that the richer frequency and variety of fiscal policy shocks available in an international sample, which makes the use of this evidence attractive, should be analyzed recognizing the heterogeneity that exists across different countries. The main conclusion of the authors’...