We show that the cyclical adjustment strategy used in a large stream of literature on the conventional or data-based analysis of fiscal policy fails to correct for cyclical effects in the case of expenditure-GDP-ratios so that the finding of expansionary austerity in this literature is based on...

Empirical studies on the effects of fiscal adjustments apply different approaches to identify discretionary changes in fiscal policy. While the results of one strand of literature suggest that the effects of fiscal adjustments on GDP are small or even positive, particularly for spending cuts...

Empirical studies on the effects of fiscal policy using the conventional or data-based approach and the Blanchard-method of cyclical adjustment or the Blanchard Fiscal Impulse (BFI) discovered that fiscal consolidations can be expansionary, particularly in the case of spending-cuts. In this...

Empirical studies on the effects of fiscal policy using the conventional or data-based approach and the Blanchard-method of cyclical adjustment or the Blanchard Fiscal Impulse (BFI) discovered that fiscal consolidations can be expansionary, particularly in the case of spending-cuts. In this...