Since the beginning of the sovereign debt crisis in the Euro Area, a main concern for European leaders is the prevention of the possible contagion from distressed countries. In our research, we assess if there is a spillover effect from those countries and which determinants can be considered...

As people age, their consumption and saving behavior tends to change. At the same time, the share of age-related public spending increases, leaving less resources for fiscal stimulus, especially if public debt ratio is already high. Using Finnish data in a Bayesian VAR model, we show that the...

Using representative household surveys conducted during the COVID-19 pandemic in two emerging economies, Thailand and Vietnam, we examine the relationship between inflation expectations and consumption. In both countries, our results show an insignificant relationship between expected inflation...

Using a newly assembled rich dataset at the regional level, this paper provides novel empirical evidence on the fiscal transmission mechanism in the Eurozone. Our baseline estimates reveal a government spending relative output multiplier around 2, an employment multiplier of 1.4, and a cost per...

This paper studies how carbon pricing affects emissions, economic aggregates and inequality. Exploiting institutional features of the European carbon market and high-frequency data, I identify a carbon policy shock. I find that a tighter carbon pricing regime leads to a significant increase in...

Automatic stabilisers are fiscal policy's first line of defence in the face of adverse economic shocks. Automatic stabilisers capture fiscal policy's automatic countercyclical response to the state of the business cycle, and are determined by factors like the progressivity of the tax system, the...