Since their accession to the European Union in 1986, both Portugal and Spain have benefited from strong financial support. Both countries have experienced considerable growth in income per capita, converging towards average European levels. However, several studies suggest a high degree of...

Since their accession to the European Union in 1986, both Portugal and Spain have benefited from strong financial support. Both countries have experienced considerable growth in income per capita, converging towards average European levels. However, several studies suggest a high degree of...

The sovereign debt crisis, triggered by the 2007-08 global financial crisis, has affected several European Union (EU) countries, leading to unprecedented financial assistance programs. In May 2011, the Portuguese Government set an agreement with the Troika (a supranational institution composed...

Government’s behavior is expected to be non-neutral in terms of impacts on both welfare and inequality. It is acknowledged in most literature that fiscal policy often involves trade-offs between economic growth and inequality.

Between 1990 and 2010, the Dutch government pursued two successful fiscal adjustments: first, in 1995–2002, through a pure expenditure-based strategy and second, in 2004–2007, through a mixed strategy based on social transfer cuts and tax increases. In order to assess welfare and, in...

Thirlwall's Law (Thirlwall, 1979) considers that growth can be constrained by the balance-of-payments when the current account is in permanent deficit. The law focuses on external imbalances as impediments to growth and does not consider the case where internal imbalances emerging from budget...

Thirlwall's Law considers that growth can be constrained by the balance-of-payments when the current account is in permanent deficit. The Law focuses on external imbalances as impediments to growth and does not consider the case where internal imbalances (budget deficits or public debt) can also...