Bajo-Rubio, Oscar; Díaz-Roldán, Carmen; Esteve, Vicente - Centro de Estudios Andaluces, Government of Andalusia - 2003
In this paper we re-examine the long-run sustainability of budget deficits, when fiscal policy is conducted as a …, a country that has recently accomplished an important fiscal consolidation. Overall, our results suggest the presence of … significant nonlinear effects in Spanish fiscal policy, so that fiscal authorities would cut deficits only if they are “large …