The output effect of fiscal consolidations
Webb4 juni 2024 · Fiscal consolidations based on cuts in current expenditures have a smaller effect on economic growth (although the effect is statistically insignificant), while fiscal … WebbThe study finds that the output's fiscal impact multiplier is larger during contractions than during expansion. Furthermore, in contractions, the fiscal multipliers are 0.06% for private...
The output effect of fiscal consolidations
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WebbThe large size of the effects points in the direction of self-defeating fiscal consolidations as suggested by DeLong and Summers (2012). Attempts to reduce debt via fiscal consolidations have very likely resulted in a higher debt to GDP ratio through their long-term negative impact on output. Acknowledgements and Disclosures Download Citation WebbThey both cause, on average, a mild recessionary effect after one year from the start of the consolidation, but this effect starts vanishing the following year.3On the other hand, tax-based adjustments have caused much larger output …
Webb12 dec. 2013 · However, we provide some evidence that output growth might affect the fiscal tightening process so that fiscal consolidations are not exogenous to economic growth. Once we allow for feedback effects from economic growth to fiscal adjustments, we find that expansionary effects disappear and recover the typical Keynesian effect of … Webb1 juli 2024 · Episodes of fiscal consolidation have short- and medium-term output effects, but here, too, composition matters: Fiscal consolidations based on reducing public investment have the largest...
Webb14 apr. 2024 · This paper analyzes the effect of time-varying cross-country fiscal policy interaction on output and consumption multipliers in a monetary union. The framework is that of a standard New Keynesian two-country model with distortionary taxes and Markov Switching fiscal regimes. The paper uses a two-state Markov switching process for each … WebbThe simulation of the fiscal plans adopted by 16 OECD countries over a 30-year period supports the hypothesis that the effects of consolidations depend on their design. Fiscal …
Webb15 dec. 2024 · This paper examines the output effects of changes in public expenditure and revenue in sub-Saharan African countries during 1990–2016. Fiscal multipliers in …
WebbThe economic and financial crisis was the catalyst for a fiscal crisis that engulfs many OECD countries. Consolidating public finances in order to address the consequences of … crystron halq tcgplayerWebbEpisodes of fiscal consolidation have short- and medium-term output effects, but here, too, composition matters: fiscal consolidations based on reducing public investment have … dynamics gp gps error 56WebbThis paper tests five hypotheses explaining thesuccess and failure of fiscal consolidation in amultivariate regression framework. These hypothesesconcern (i) the composition of … dynamics gp drop ship processWebbWhen public investment is penalized relative to public consumption and thus, its share in public expenditures decreases, a 1 percent of GDP consolidation reduces output by 0.7 … dynamics gp email customer statementsWebbThe experience of Denmark and some other countries has given rise to a debate on the possibility that fiscal consolidations may be expansionary: that is, they may actually … crystron prototype limited editionWebb1 aug. 2012 · The simulation of the fiscal plans adopted by 16 OECD countries over a 30-year period supports the hypothesis that the effects of consolidations depend on their … crystron impactWebbIn the short term, the pace of consolidation needs to be balanced with the effects of fiscal retrenchment on growth. The trade-off will depend on the choice of fiscal instrument, the size of the multiplier (which is highly uncertain) and whether monetary policy can offset the adverse demand effect. dynamics gp frx download