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Fetzer, Thiemo - 2018

Did austerity cause Brexit? This paper shows that the rise of popular support for the UK Independence Party (UKIP), as … to austerity since 2010. In addition to exploiting data from the population of all electoral contests in the UK since … have resulted in a Remain victory had it not been for a range of austerity-induced welfare reforms. Further, auxiliary …

Persistent link: https://www.econbiz.de/10012910997

Fiscal Rules, Financial Stability and Optimal Currency Areas

De Grauwe, Paul - 2015

In this paper we suggest that Eurozone countries face a policy trade-off among: 1) a common rule imposing co-movements in fiscal policy; 2) financial stability; and 3) financial integration. We provide empirical evidence documenting the existence of such a trade-off in the period characterized...

Persistent link: https://www.econbiz.de/10013020581

The Impact of Fiscal Rules on Public Finances : Theory and Empirical Evidence for the Euro Area

Marneffe, Wim - 2011

This paper presents a review of the most significant fiscal rules policymakers can choose from. The insights from this review are then applied to the current budgetary situation of the European Union. In the European Union, the supranational Stability and Growth Pact (SGP) should provide the...

Persistent link: https://www.econbiz.de/10013131350

Fiscal Policy Sustainability, Economic Cycle and Financial Crises : The Case of the GIPS

Legrenzi, Gabriella Deborah - 2014

We extend previous work on the sustainability of the government's intertemporal budget constraint by allowing for non-linear adjustment of the fiscal variables, conditional on the sign of budgetary disequilibria and the phase of the economic cycle. Further, our endogenously estimated threshold...

Persistent link: https://www.econbiz.de/10013065030

Cyclical Fiscal Policy, Output Volatility, and Economic Growth

Badinger, Harald - 2021

This paper provides a comprehensive empirical assessment of the relation between the cyclicality of fiscal policy, output volatility, and economic growth, using a large cross-section of 88 countries over the period 1960 to 2004. Identification of the effects of (endogenous) cyclical fiscal...

Persistent link: https://www.econbiz.de/10013316549

Evidence on Fiscal Consolidations and the Evolution of Public Debt in Europe

Cafiso, Gianluca - 2013

The objective of this paper is to gain insights into the relationship between deficit-reducing policies and the evolution of the debt/GDP ratio. We consider past events of fiscal consolidation in a selected group of EU countries, by using the new data set recently made available by Devries et...

Persistent link: https://www.econbiz.de/10013089185

Macroeconomic Effects of Fiscal Adjustment : A Tale of Two Approaches

Yang, Weonho - 2013

We investigate the short-term effects of fiscal adjustment on economic activity in 20 OECD countries from 1970 to 2009. We compare two approaches: the traditional approach based on changes in cyclically adjusted primary balance (CAPB) and the narrative approach based on historical records....

Persistent link: https://www.econbiz.de/10013075620

3-Step Analysis of Public Finances Sustainability : The Case of the European Union

Afonso, António - 2008

We use a 3-step analysis to assess the sustainability of public finances in the EU27. Firstly, we perform the SURADF specific panel unit root test to investigate the mean-reverting behaviour of general government expenditures and revenues ratios. Secondly, we apply the bootstrap panel...

Persistent link: https://www.econbiz.de/10012770443

Fiscal Rules and Government Size in the European Union

Mierau, Jochen O.; Andreu, Eduard Suari - 2021

This paper studies the impact of national fiscal rules on government size as measured by the ratio of government expenditures to gross domestic product. We develop a model of the budgetary process and show that a common pool problem may arise which can be mitigated through fiscal rules. We test...

Persistent link: https://www.econbiz.de/10013315620

Successful Fiscal Adjustments - Does Choice of Fiscal Instrument Matter?

Holden, Steinar; Midthjell, Nina - 2021

We examine fiscal adjustment episodes in 24 OECD countries in order to find how austerity affects debt and growth, and …

Persistent link: https://www.econbiz.de/10013315701