Fiscal Federalism, Fiscal Consolidations and Cuts in Central Government Grants: Evidence from an Event Study
48 Pages Posted: 5 Nov 2004
Date Written: October 2004
Abstract
In this paper we examine financial interactions between tiers of government. Whilst most existing empirical evidence has focused on the US, it is difficult to generalize conclusions obtained to countries where the position and remit of lower tiers of government is evolving or is less clear constitutionally. Applying event study methodology to a dataset covering 15 countries we examine the timing, extent and composition of fiscal changes around consolidation attempts and central government grant cuts. Highlighting the participation of central and sub-central tiers of government, our analysis also sheds light on key outcomes, including decentralized service provision and macroeconomic adjustment.
JEL Classification: E62, E65, H11, H77
Suggested Citation: Suggested Citation
Do you have a job opening that you would like to promote on SSRN?
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, ...