The literature on heteroskedasticity and autocorrelation robust (HAR) inference is extensive but its usefulness relies on stationarity of the relevant process, say Vt, usually a function of the data and estimated model residuals. Yet, a large body of work shows widespread evidence of various...

This paper uses fiscal consolidation experiences of a sample of OECD economies over the period 1970 to 2008 to examine the interplay between fiscal adjustments and economic performance.The main purpose of this paper is to study whetherthe impact of fiscal consolidation on the real economy is...