This article examines the short-term economic impact of alternative fiscal adjustment strategies, with an especial focus on their effect on economic growth and income distribution Based on a sample of 53 adjustment episodes occurred in the fifteen EU Member States between 1960-2000, this article...

Relatively little empirical evidence exists about countries' external adjustment to changes in fiscal policy and, in particular, to changes in taxes. This paper addresses this question by measuring the effects of tax and government spending shocks on the current account and the real exchange...

The ongoing fiscal and financial crisis with significant macroeconomic imbalances in the euro area raises the question in how far public–private wage interaction and even wage spirals contribute to fiscal and competitiveness problems. In this vain we analyse empirically whether the evolution...

Can discretionary fiscal policy effectively stimulate output? This paper examines this question in the context of developing Asia, where many countries implemented fiscal stimulus measures to support domestic demand during the global crisis. Economic conditions normalized after the crisis but...

This paper analyzes the twin deficit hypothesis - simultaneous current account deficit and budget deficit - in three small open Baltic countries (Estonia, Latvia and Lithuania) running under certain forms of the fixed exchange rate regime. The idea of twin deficits is tested using the vector...

This article aims to identify the applied strategies for fiscal adjustments for the period 1996-2011 in European Union countries –there are determined the fiscal policy stance (neutral, relaxed, very relaxed, strict or very strict), there are considered the episodes of fiscal adjustment (a...

Current financial and economical context brings new challenges for most of the countries - the decrease of public revenues and the incapacity to adjust the public expenditures. This article aims to identify the applied strategies for large discretionary fiscal changes - fiscal adjustments and...

This paper analyzes the short-term effects of fiscal adjustments on macroeconomic aggregates for a panel of 20 OECD countries during 1970--2008. We find that episodes of budget consolidation have an insignificant impact on growth and consumption. On the other hand, fiscal adjustments are...

This paper endeavours to illuminate the political and institutional factors that can help explain differing degrees of fiscal retrenchment in European Union countries for the time period 1990-2001. Several variants of the partisan approach and the veto players framework are elucidated and...

This paper proposes Bayesian estimates for welfare effects of consumption fluctuations and growth. Annual data from 82 developed and developing countries indicate a large degree of uncertainty as regards point estimates. Moreover, the comparison between the welfare gain from consumption...