theoretical grounds the discretionary component of taxation should be allowed to have different effects on output than the … Favero and Giavazzi (2010): typically, a one percentage point of GDP increase in taxes leads to a decline in GDP by about 1 …

percent of GDP generates output and unemployment multipliers respectively of about 1.2 per cent (at one year) and 0 ….6 percentage points (at the peak). Each percentage point increase in GDP produces an increase in employment of about 1.3 million …/or debt financing with distortionary taxation only worsens the picture. New Keynesian features only marginally magnify the …

This Paper studies the effects of fiscal policy on GDP, inflation and interest rates in five OECD countries, using a … structural Vector Autoregression approach. Its main results can be summarized as follows: 1) The effects of fiscal policy on GDP … spending shocks and tax cuts on GDP and its components have become substantially weaker over time; in the post-1980 period …

This paper studies the effects of fiscal policy on private GDP, inflation and the long-term interest rate in Italy … services has a sizeable and robust effect on economic activity: an exogenous one per cent (in terms of private GDP) shock … increases private real GDP by 0.6 per cent after 3 quarters. The response goes to zero after two years, reflecting with a lag …