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- W2073288047 abstract "The aim of this paper is to deepen the understanding of the macroeconomic consequences of fiscal consolidations. In particular, there is evidence in the literature of fiscal consolidation episodes producing (non-Keynesian) expansionary effects in the short run. We replicate this result for a panel of OECD countries under exogeneity of the fiscal consolidation. However, we provide some evidence that output growth might affect the fiscal tightening process so that fiscal consolidations are not exogenous to economic growth. Once we allow for feedback effects from economic growth to fiscal adjustments, we find that expansionary effects disappear and recover the typical Keynesian effect of fiscal adjustments. This finding points to the need to take these short-term negative implications into account in the design of fiscal consolidations." @default.
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- W2073288047 date "2013-12-01" @default.
- W2073288047 modified "2023-10-01" @default.
- W2073288047 title "Fiscal Consolidations and Economic Growth" @default.
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- W2073288047 doi "https://doi.org/10.1111/j.1475-5890.2013.12017.x" @default.
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