1 option
The Effects of Fiscal Consolidations: Theory and Evidence / Alberto Alesina, Omar Barbiero, Carlo Favero, Francesco Giavazzi, Matteo Paradisi.
- Format:
- Book
- Author/Creator:
- Alesina, Alberto.
- Series:
- Working Paper Series (National Bureau of Economic Research) no. w23385.
- NBER working paper series no. w23385
- Language:
- English
- Physical Description:
- 1 online resource: illustrations (black and white);
- Other Title:
- Effects of Fiscal Consolidations
- Place of Publication:
- Cambridge, Mass. National Bureau of Economic Research 2017.
- Summary:
- We investigate the macroeconomic effects of fiscal consolidations based upon government spending cuts, transfers cuts and tax hikes. We extend a narrative dataset of fiscal consolidations, with details on over 3500 measures for 16 OECD countries. We show that government spending cuts and cuts in transfers are much less harmful than tax hikes, despite the fact that non-distortionary transfers are not classified as spending. Standard New Keynesian models robustly match our results when fiscal shocks are persistent. Wealth effects on aggregate demand mitigate the impact of a persistent spending cut. Static distortions caused by persistent tax hikes cause larger shifts in aggregate supply under sticky prices.
- Notes:
- Print version record
- May 2017.
The Penn Libraries is committed to describing library materials using current, accurate, and responsible language. If you discover outdated or inaccurate language, please fill out this feedback form to report it and suggest alternative language.