Download This PaperAssessing Fiscal Episodes
ISEG Working Paper No. 15/2011/DE/UECE
41 Pages Posted: 17 Sep 2011
Date Written: September 16, 2011
Abstract
In an OCDE panel, for the period 1970-2010, we assess the effects of fiscal consolidation episodes, with four different definitions. Our results reveal that lower final government consumption would increase private consumption in three out of the four approaches, when there is a fiscal consolidation, and the debt ratio is above the cross-country average. The change in the cyclically adjusted primary balance and the duration of the consolidation episode contribute for the success of the consolidation, and the opposite applies if the latter is more based on the revenue side. Finally, the effects of social transfers on private investment tend to be negative.
Keywords: fiscal consolidation, non-Keynesian effects, panel data, logit
JEL Classification: C23, E21, E62, H5, H62
Suggested Citation: Suggested Citation
Do you have negative results from your research you’d like to share?
Recommended Papers
-
Fiscal Adjustments in OECD Countries: Composition and Macroeconomic Effects
-
Fiscal Adjustments in OECD Countries: Composition and Macroeconomic Effects
-
Can Severe Fiscal Contractions Be Expansionary? Tales of Two Small European Countries
By Francesco Giavazzi and Marco Pagano
-
Searching for Non-Linear Effects of Fiscal Policy: Evidence from Industrial and Developing Countries
By Francesco Giavazzi, Tullio Jappelli, ...
-
Fiscal Policy, Profits, and Investment
By Alberto F. Alesina, Silvia Ardagna, ...
-
Non-Keynesian Effects of Fiscal Policy Changes: International Evidence and the Swedish Experience
By Francesco Giavazzi and Marco Pagano
-
The Benefits of Crises for Economic Reforms
By Allan Drazen and Vittorio Grilli
-
Trigger Points and Budget Cuts: Explaining the Effects of Fiscal Austerity
By Giuseppe Bertola and Allan Drazen
-
Searching for Non-Keynesian Effects of Fiscal Policy
By Francesco Giavazzi, Tullio Jappelli, ...