This work provides empirical evidence for a sizeable, statistically significant negative impact of the quality of fiscal institutions on public spending volatility for a panel of 23 EU countries over the 1980–2007 period. The dependent variable is the volatility of discretionary fiscal policy,...

In order to assess the impact of fiscal measures, economists usually rely on the fiscal multiplier whose nature and magnitude in the context of the financial crisis has become the focus of heated controversy against an ideological backdrop. Rather late it has been acknowledged that fiscal...

This paper analyses the impact of public expenditures and tax revenues on non‑oil economic growth in Azerbaijan for the period of 2000Q1‑2015Q2 by employing OLS, ARDL, FMOLS, DOLS, CCR and Granger Causality techniques. Different cointegration methods result in consistent results. In this...

The article aims to provide a new approach to the modelling of fiscal policy effectiveness in Azerbaijan. It is argued that massive transfer of oil revenues from SOFAZ to state budget after 2008 has sharply declined the impact of budget expenditures over non-oil sector economic performance, so...

What do we know about the output effects of fiscal policy in low income countries (LICs)? There are very few empirical studies on the subject. This paper fills this gap by estimating the output effects of government spending shocks in LICs. Our analysis-based on the local projection method-finds...

In both developed and developing countries, there are basically two main sources of economic instability: exogenous shocks and inappropriate policies. Exogenous shock (terms-of-trade shocks, natural disasters and capital flow reversals) can throw an economy into disequilibrium and therefore...

During the next few decades the populations of most developed countries will grow older and older as a result of the low fertility rates since the 1970s and/or the continuously increasing life expectancy. Poland, one of the biggest countries in Central Europe, will be confronted rather seriously...

We examine fiscal adjustment episodes in 24 OECD countries in order to find how austerity affects debt and growth, and whether the choice of fiscal instrument matters for the results. Influential existing studies argue that spending cuts are more likely to successfully reduce debt and enhance...

This article reveals a neglected aspect of macroeconomic indicators – their integrative power as vehicles to deepen European integration. It focusses on the euro area fiscal stance which provides guidance on the overall direction of fiscal policy in the euro area. Debtor countries, the ECB and...

This paper presents a comprehensive framework examining fiscal sustainabil- ity in developing economies. It integrates public capital, labor informality, and global liquidity shocks in a two-sector DSGE model for a small open economy, revealing their intricate interplay and nonlinear impact on...