The output effect of fiscal consolidations

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August undefined, 2024

WebbEpisodes 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 effect on output, while fiscal consolidations based on revenue mobilization are less harmful than those based on public investment cuts. Webbför 2 dagar sedan · Fiscal policy can also play an active role. By cooling off economic activity, a tighter fiscal policy would support monetary objectives. Appropriately designed fiscal consolidations can help rebuild much-needed fiscal buffers and help strengthen financial stability, something that we explore in Chapter 3 of our World Economic Outlook.

Fiscal Consolidations and Public Debt in Europe

Webb9 aug. 2024 · They both cause, on average, a mild recessionary effect after one year from the start of the consolidation, but this effect starts vanishing the second year. On the … WebbPast events suggest a positive short-term effect, while the most-relevant medium-term effect seems to be negative. On the whole, savings-based fiscal consolidations are to be preferred in any case. Fiscal Consolidations and Public Debt in Europe No 2013-35 – November Working Paper Gianluca Cafiso & Roberto Cellini derivative of thetacostheta

EconPapers: The output effect of fiscal consolidation plans

Webb15 dec. 2024 · Results show fiscal consolidations lead to a significant increase in the vote shares of extreme parties, lower voter turnout, and a rise in political fragmentation. Austerity-driven recessions amplify the political costs of economic downturns considerably by increasing distrust in the political environment. Authors Mathias Klein Ana Sofia Pessoa WebbFiscal adjustments based upon spending cuts are much less costly, in terms of output losses, than tax-based ones and have especially low output costs when they consist of permanent rather than stop and go changes in taxes and spending. WebbFiscal adjustments have especially low output costs when they consist of permanent rather than stop and go. The difference cannot be explained by accompanying policies, including monetary policy, and appears to be mainly due to the different response of … chronische inaktive gastritis

Fiscal Consolidation - OECD

Webbbased fiscal consolidation leads to better (less negative) output effects than tax-based consolidations. Some authors even find that spending-based consolidations have the … Webb31 dec. 2016 · Spending-based consolidations tend to worsen inequality more significantly, relative to tax-based consolidations. The composition of austerity measures also … chronische indicatie fysiotherapie 2020Webb14 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 … chronische indicatie fysiotherapie

"Webb1 juli 2015 · The output effect of fiscal consolidation plans☆ Tax-based and spending-based stabilizations: theory and empirical evidence. Gathering empirical evidence on the … " - The output effect of fiscal consolidations

The output effect of fiscal consolidations

The output effect of fiscal consolidation plans

WebbCross-country differences in the consequences of ﬁscal consolidations have stimulated a lively debate on the determinants and effects of large changes in the ﬁscal stance. … Webb31 dec. 2014 · The third scientific question concentrates on the ways the fiscal consolidations were implemented and the potential influence of consolidations strategies on short ... are convinced that longer-term benefits from fiscal consolidation are in a trade-off with short-term deceleration in output growth. However, more recent research ...

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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 … Webb2 sep. 2024 · A growing literature emphasizes that the output effect of fiscal consolidation hinges on its composition, as the choice of increasing revenues vs cutting expenditure is not neutral. Existing studies, however, underscore the …

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 … Webbto larger than standard short-term fiscal multipliers (i.e. the impact of discretionary fiscal policy measures on output). ... C. Favero and F. Giavazzi (2012), “The output effect of …

WebbSanz (2011) examines the impact of fiscal consolidations on the composition of government expenditure drawing on a sample of 25 OECD countries over the period 1970-2007. WebbThis note shows that what matters for the effect of fiscal consolidation on output is not only the level of government debt but also the level of risk that stems from it. The …

WebbSimulation of 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 adjustments …

Webb1 maj 2009 · The Output Effect of Fiscal Consolidations A. Alesina, Carlo A. Favero, F. Giavazzi Economics 2012 The present paper argues that the correct experiment to evaluate the effects of a fiscal adjustment is the simulation of fiscal plans rather than of individual fiscal shocks. The simulation of the… 168 PDF View 1 excerpt, cites background derivative of theta cos theta sin thetaWebbFör 1 dag sedan · Brad Setser asks why the IMF DSAs came to such different conclusions in Sri Lanka and Zambia despite the two countries having similar debt and revenue positions. Sri Lanka’s debt-to-GDP ratio is estimated at 128% in 2024, Zambia’s at 123%. Sri Lanka’s average tax revenues were 12% of GDP in the ten years before the pandemic, … chronische indicatie fysiotherapie overheidWebbSimulation of fiscal plans adopted by 16 OECD countries over a 30-year period. × Close Log In. Log in with Facebook Log in with Google. or. Email. Password. Remember me on this … chronische indicatie fysiotherapie 2021 dswWebbAppropriately designed fiscal consolidations will also help rebuild much needed fiscal buffers and help strengthen financial stability (April 2024 WEO Chapter 3; April 2024 Fiscal Monitor). Should a systemic financial crisis loom large, a careful and timely recalibration of policy will be needed to safeguard both the financial system and chronische indicatie fysiotherapie 2021 vgzWebbSimulation of 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 adjustments … chronische indicatie fysiotherapie 2022 czWebb7 sep. 2012 · The key to estimating the effects of fiscal policy on output is this identifying shifts in fiscal policy that are 'exogenous'. Policy changes that are not a response to the … chronische indicatie fysiotherapie 2022 copdWebbWhen 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 … derivative of theta function