We explore the underlying determinants of the macroeconomic effects of fiscal policy and tax and social security reform using the Global Fiscal Model (GFM). We show that the planning horizon of consumers, access to financial markets, and the elasticity of labor supply, as well as the...

We explore the underlying determinants of the macroeconomic effects of fiscal policy and tax and social security reform using the IMF's Global Fiscal Model (GFM). We show that the planning horizon of consumers, access to financial markets, and the elasticity of labor supply, as well as the...

Manmohan S. Kumar, Daniel Leigh and Alexander Plekhanov analyze the determinants of fiscal consolidation success in OECD economies as well as the short-run and long-run effects of fiscal adjustments on economic activity. They examine fourteen case studies, panel data for OECD economies, and the...