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...

The paper examines the macroeconomic effects of fiscal policy under varying economic conditions. The analysis is conducted using a closed-economy agent-based model, where macroeconomic outcomes of fiscal intervention emerge from the bottom up as the result of interactions between heterogeneous...

The PER analysis highlights priority policy actions to increase fiscal space and improve resilience to economic shocks and climate risks through human and physical capital investments. Chapter 1 focuses on Seychelles' recent fiscal performance and examines trends in its public finances. Chapter...

The role of research and development (R&D) as a main foundation of innovation, productivity improvement, and a key element for national competitive advantage in the global economy is well established. This study aims to examine the relationship between R&D investment and economic growth through...

A Bayesian factor-augmented interacted vector autoregression framework purified of expectations is employed to analyze how government spending shocks have impacted CO2 emissions in the United States from the 1980s to the pre-pandemic period. Consumption-generated emissions are found to have...

We build an endogenous growth model that distinguishes productive and welfare government expenditures and embeds fiscal externalities. The model yields three testable hypotheses: (i) productive expenditure raises growth (Barro effect); (ii) productive expenditure generates cross-country...

Just like every other socio-economic dimension, also the fiscal situation in West Bank and Gaza is shaped by its fragility, conflict and violence (FCV) context. It is difficult to overstate the impact that the Israeli occupation imposes on the economy of the West Bank and Gaza. Along with the...

Studium und Lehre in Deutschland werden in einem komplexen Geflecht von privaten Akteuren und öffentlichen Institutionen finanziert. Inwiefern teilen sich der öffentliche und private Sektor diese Finanzierungsaufgaben? In einer Studie wurden die öffentlichen und privaten Ausgaben für das...

We evaluate the efficiency of public expenditure in the 27 European countries in achieving the Sustainable Development Goals (SDGs) of the 2030 Agenda. Using Data Envelopment Analysis (DEA), we map performance over the period 1995-2023, incorporating Musgravian functional spending -...

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...

The UK government is consulting on significant reforms to how funding from central government is allocated between English councils. From 2026-27, there will be a new system for allocating funding between councils, which will take account of new official assessments of councils' spending needs...

Wildfires pose significant environmental and socioeconomic challenges, necessitating efficient management and prevention through proper resource allocation and financial oversight. Despite evidence on risks, drivers, and opportunity costs of intervention, there is little information on how...

This study investigates the effectiveness of government expenditure in combating the incidence of poverty in Nigeria from 1981 to 2022, employing a Vector Error Correction Model (VECM) framework. The research analyzes the relationship between poverty incidence and key variables including...

The European Union is grappling with the challenge of increasing defence expenditure while maintaining fiscal discipline under the Stability and Growth Pact (SGP). The European Commission has proposed activating the national escape clause available under the SGP to accommodate defence spending...

We study anchoring effects in the elicitation of multidimensional beliefs within a single survey task using a representative sample of the German voting-age population. Respondents estimated governmentspending levels across several domains (e.g., education, defense, social security), with...

We study anchoring effects in the elicitation of multidimensional beliefs within a single survey task using a representative sample of the German voting-age population. Respondents estimated government-spending levels across several domains (e.g., education, defense, social security), with...

The upcoming Spending Review will involve some very difficult decisions on public service spending, with virtually no headroom against the government's fiscal rules. The government has set out plans for overall departmental spending to grow by about 1.2% per year in real terms between 2025-26...

European countries face high, rising, and long-lasting spending pressures, calling for a renewed focus on fiscal policy and comprehensive structural reforms to prepare their economies for the future. On top of existing fiscal consolidation needs, spending pressures in five key areas are imminent...

Georgia has made impressive economic progress over the past two decades, achieving strong and resilient economic growth and development despite numerous external and domestic shocks. This Fiscal Incidence Analysis (FIA) report serves as a baseline for evaluating current fiscal policy and...

The 2024 update also aligns with the World Bank's renewed strategic priorities for Health, Nutrition, and Population, including the goal to support countries in delivering affordable, quality health services to 1.5 billion people by 2030 and the World Bank's Human Capital Project. This 2024...

Many public-private partnership (PPP) projects in China are facing increased fiscal expenditure responsibilities and weakened fiscal capacity, which may hinder investment in corporate innovation. Using data from Chinese prefecture-level cities and listed firms from 2014 to 2020, we find that PPP...

Fiscal policy plays an important macroeconomic role in Mongolia. On the one hand, fiscal expansion is seen as a measure to boost aggregate demand. On the other hand, import leakages mitigate the impact of fiscal expansion on growth. Applying a structural vector autoregressive model, this paper...

This paper investigates the relationship between public debt and the effectiveness of fiscal policy, presenting evidence of an inverse relationship between government debt and fiscal multipliers. To explain the results, I develop and calibrate a HANK model tailored to the U.S. economy. The model...

Building on the dataset and identification strategy of Ramey and Zubairy (2018), this paper investigates the dynamic effects of fiscal shocks using a state-dependent local projection approach. By interacting fiscal shocks with a continuous state variable, the analysis captures how fiscal...

The additionality principle of the European cohesion policy was verified ex-ante by the European Commission and was eliminated starting from the 2021-27 programming period. However, the cohesion treatment may have ex-post reduced, in some cases, national spending and the decision to eliminate...

This paper revisits the empirical analysis of Nakamura and Steinsson (2014). I reconstruct and extend the original dataset to cover the period 1966-2019, harmonizing two major sources of data: the Defense Contract Action Data System (DCADS) and USAspending.gov. I discuss how to aggregate these...

The relationship between trade openness and economic performance has been widely debated and researched during the last several decades. However, the specific influence of trade openness from the perspective of controlling the inflation rate is rarely researched specifically for the Kingdom of...

This paper examines the effect of public expenditure efficiency on FDI inflows, using data on a panel of 100 developing countries from 1990 to 2017. We find robust evidence that improvements in public expenditure efficiency significantly increase FDI inflows. This effect is complementary to...