We provide a systematic analysis of fiscal consolidation in a dynamic general equilibrium model with a detailed government sector and a share of credit-constrained households. We simulate permanent cuts in government consumption, government investment, and transfer payments as well as permanent...

How should public debt be managed when uncertainty about the business cycle is widespread and debt levels are high, as in the aftermath of the last financial crisis? This paper analyzes optimal fiscal policy with ambiguity aversion and endogenous government spending. We show that, without...

Many South Asian countries experienced changes in government and strong economic growth since the early 2000s. Poverty and social exclusion have received growing attention, and many governments in the region strengthened their commitments to ensure equal access to basic healthcare, education and...

Many South Asian countries experienced changes in government and strong economic growth since the early 2000s. Poverty and social exclusion have received growing attention, and many governments in the region strengthened their commitments to ensure equal access to basic healthcare, education and...