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they consist of permanent rather than stop and go changes in taxes and spending. The difference between tax-based and …
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The present paper argues that the correct experiment to evaluate the effects of a fiscal adjustment is the simulation of fiscal plans rather than of individual fiscal shocks. The simulation of the fiscal plans adopted by 16 OECD countries over a 30-year period supports the hypothesis that the...
Persistent link: https://www.econbiz.de/10012460328
The present paper argues that the correct experiment to evaluate the effects of a fiscal adjustment is the simulation of fiscal plans rather than of individual fiscal shocks. The simulation of the fiscal plans adopted by 16 OECD countries over a 30-year period supports the hypothesis that the...
Persistent link: https://www.econbiz.de/10013101511
shifts: we find that the correlation between unanticipated and anticipated shifts in taxes and spending is heterogeneous …
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