Alesina, Alberto; Ciminelli, Gabriele; Furceri, Davide; … - 2024
This paper revisits the conventional but unproven wisdom that voters penalize governments for adopting fiscal austerity … in a sample of advanced economies. We consider the composition of the austerity package and the economic manifesto of the … implementing government and find that austerity packages consisting mostly of tax hikes have a significant electoral cost, which is …