This paper provides a critical assessment of the new EU fiscal framework, with a focus on its implications for public expenditure on the twin green and digital transition. According to the reformed rules, member states may commit to a package of investment and reform to extend the fiscal...

This paper studies the impact of austerity measures implemented by the UK government after 2010 on life expectancy and mortality. We combine administrative data sources to create a panel dataset spanning from 2002 to 2019. Using a difference-in-differences strategy, we estimate the effect of...

Climate action requires significant public- and private sector investment to achieve meaningful reductions in carbon emissions. This paper documents that large-scale austerity, coupled with barriers to flows of data and a lack of (digital) skills in (local) government, may have been a...

We study the effect of political regime change on higher education and its distributional and political consequences. We focus on the 1973 coup that brought Augusto Pinochet to power in Chile. The Pinochet dictatorship's aims of political control and fiscal conservatism led to a large reduction...

Climate action requires significant public- and private sector investment to achieve meaningful reductions in carbon emissions. This paper documents that large-scale austerity, coupled with barriers to flows of data and a lack of (digital) skills in (local) government, may have been a...

Economic theory has recently begun to consider the economic impact of narratives. Narrative economics can also be extended to the analysis of the economic-political effect of narratives in the context of the European core-periphery divide, which intensified after the European sovereign-debt...

This article examines the complex relationship between right-wing authoritarianism and neoliberalism in India. It explores the consequences of the right-wing authoritarian electoral majority and its alliance with neoliberal forces on democracy, economic development and distributive justice in...

For decades, African governments have cited debt servicing and international credit ratings as the reasons for continued policies of austerity. It is demonstrated here that though unjust and anti-developmental, as critics of so-called structural adjustment have argued, IMF prescriptions and...

The paper aims to establish whether austerity measures promote economic development, improve infrastructure development, and whether they exacerbate infrastructure backlogs. The methodology used is a quantitative research method, sourcing secondary quarterly data from the South African Reserve...

This paper studies the effect of austerity on forms of political participation-including voting, appealing for reform, and peaceful protesting-and the role of preferences for redistribution in shaping the relationship between individual exposure to austerity and political participation. The...

This paper provides a critical assessment of the new EU fiscal framework, with a focus on its implications for public expenditure on the twin green and digital transition. According to the reformed rules, member states may commit to a package of investment and reform to extend the fiscal...

This paper studies the impact of austerity measures implemented by the UK government after 2010 on life expectancy and mortality. We combine administrative data sources to create a panel dataset spanning from 2002 to 2019. Using a difference-in-differences strategy, we estimate the effect of...

In this paper, we analyse the effects on the economies of the European Union and the rest of the world, of several austerity policies implemented by the Southern European countries, i.e., Portugal, Italy, Greece, and Spain. In particular, we simulate the reduction in one point in the government...

Fiscal rules have been shown to support fiscal discipline by improving government budget balances and restraining the growth of debt. However, questions remain about what enhances their effectiveness and how certain conditions help to build the credibility needed for their survival and success....

The European Union's fiscal framework, updated in April 2024, aims to strengthen fiscal sustainability and foster public investment. It requires countries to maintain or gradually reduce their public debts to no more than 60 percent of GDP, and ensures compliance with a 3 percent of GDP deficit...

To consider legal standards in empirical research designs, the qualitative information of the law needs to be transferred in a numerical variable. The challenge in creating such a variable consists in finding the right balance between high information density and transparency while keeping the...

The trade-off between consistent (rule-based) and optimal fiscal policy became evident in the zero lower bound era. With such low interest rates, the argument goes, optimal fiscal policy required extending debt financed public investment spending. But while fiscal rules ensured consistency, they...

This paper develops a sovereign default model with capital accumulation, long-term debt, and fiscal rules with two distortions: debt dilution and private underinvestment. Fiscal rules generate a long-run economic expansion because they mitigate default risk caused by dilution, which increases...

I show that in a canonical HANK model, under a balanced budget fiscal rule, the effect of a nominal interest rate peg is much larger than in a representative agent (RA) model. By contrast, under a standard fiscal rule where tax revenue responds gradually to deviations of the debt-to-GDP ratio...

This research examines impacts of austerity on the political instability in the European Union, defined as elevated levels of electoral volatility and ideological polarization. By analyzing macroeconomic theories that elucidate the effects of austerity on citizens' wealth and the national...

The article examines how the European Commission's proposal to reform the Stability and Growth Pact (SGP) in terms of the pace of public debt reduction may affect basic economic parameters, such as GDP, consumption and investment levels, as well as fiscal parameters like the scale of subsidies...

This Economic Brief analyses the euro area fiscal stance, i.e. the impulse that national and the EU budgets provide to the euro area economy, with a focus on the 2024-2026 period. In the euro area, the European Central Bank (ECB) is entrusted with the objective of maintaining price stability...

Political risk is a significant determinant of bond yields and economic growth in both developed and emerging markets and we develop a debt sustainability analysis model with both channels using a country ratings proxy of political risk. Political risk also affects a sovereign's willingness to...