The output effect of fiscal consolidations

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August undefined, 2024

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 … 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 …

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Webb27 dec. 2014 · The Output Effect of Fiscal Consolidations DOI: 10.1016/j.jinteco.2014.11.003 Authors: Alberto Alesina Harvard University Carlo Favero … 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. grace alliance chapel burlington nj

EconPapers: The output effect of fiscal consolidation plans

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 … Webb26 aug. 2012 · Fiscal consolidations achieved by means of spending cuts are much less costly in terms of output losses than tax-based ones. The difference cannot be … 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 … chili\u0027s chicken crispers changed

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The Effects of Fiscal Consolidations: Theory and Evidence

WebbOutput effects of fiscal consolidations . Carlo Favero, Francesco Giavazzi 07 September 2012. ... This is a tricky question since declining output can affect fiscal policy just as … WebbThis paper studies the impact of tax-based consolidations on reelection outcomes. Using a granular database of tax-based consolidations for a panel of 10 OECD countries over the last 40 years, we find that tax reforms are politically costly but … chili\\u0027s chicken crispersWebbThe effect on output growth of EB plans is indistinguishable from zero for about two years and then becomes significantly positive, while TB adjustments lead to deep recessions. The component of aggregate demand which seems to explain these differences in all countries, not only Canada, is investment, which is correlated with investor confidence. grace alliance church milwaukee wi

"Webb1 maj 2024 · We investigate the macroeconomic effects of fiscal consolidations based upon government spending cuts, transfers cuts and tax hikes. We extend a narrative … " - The output effect of fiscal consolidations

The output effect of fiscal consolidations

WebbFör 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, … 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 …

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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 Webb1 nov. 2024 · Fiscal consolidations that are initiated in expansions, ... debt via fiscal consolidations have very likely resulted in a higher debt to GDP ratio through their long-term negative impact on output.

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 … WebbWe find that it matters crucially how the fiscal correction occurs. Adjustments based upon spending cuts are much less costly in terms of output losses than tax-based ones. …

WebbSpillovers can amount up to half (resp. one sixth) of the domestic impact in the case of VAT‑based (resp. spending‑based) consolidations. Outside the ZLB, fiscal expansion in one region ... 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.

Webb1 mars 2024 · In the short run, spending-based austerity reforms are worse than tax-based reforms in terms of lost income. However, in the long run, spending-based reforms produce higher output than tax-based reforms. In addition, welfare effects vary significantly across generations, skill groups, and working sectors.

WebbThis paper tests five hypotheses explaining thesuccess and failure of fiscal consolidation in amultivariate regression framework. These hypothesesconcern (i) the composition of … chili\u0027s chicken crispers copycatWebbIn 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. chili\u0027s chicken crispers nutritionWebbAppropriately 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 chili\u0027s chicken crispers original styleWebbThe 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 … grace alltech standardsWebbbetween fiscal consolidations and revisions to long-term and potential GDP. We show that fiscal policy had a negative impact on output that extends over a long horizon, as the long-term performance of GDP and the estimates of potential output were both negatively affected by fiscal consolidations. The size of the effect is very large. grace alley flag amazonWebbbased fiscal consolidation leads to better (less negative) output effects than tax-based consolidations. Some authors even find that spending-based consolidations have the … grace alone brown nelsonWebb2010) present evidence that fiscal consolidations have expansionary effects on output in the short term if they are based on spending cuts.3 These studies have been highly … grace alone by scott wesley brown