Large Changes in Fiscal Policy: Taxes Versus Spending
Alberto Alesina () and
No 15438, NBER Working Papers from National Bureau of Economic Research, Inc
We examine the evidence on episodes of large stances in fiscal policy, both in cases of fiscal stimuli and in that of fiscal adjustments in OECD countries from 1970 to 2007. Fiscal stimuli based upon tax cuts are more likely to increase growth than those based upon spending increases. As for fiscal adjustments, those based upon spending cuts and no tax increases are more likely to reduce deficits and debt over GDP ratios than those based upon tax increases. In addition, adjustments on the spending side rather than on the tax side are less likely to create recessions. We confirm these results with simple regression analysis.
JEL-codes: H2 H3 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-cba, nep-pbe and nep-pub
References: View references in EconPapers View complete reference list from CitEc
Citations View citations in EconPapers (110) Track citations by RSS feed
Published as Large Changes in Fiscal Policy: Taxes versus Spending , Alberto Alesina, Silvia Ardagna. in Tax Policy and the Economy, Volume 24 , Brown. 2010
Downloads: (external link)
Chapter: Large Changes in Fiscal Policy: Taxes versus Spending (2010)
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: http://EconPapers.repec.org/RePEc:nbr:nberwo:15438
Ordering information: This working paper can be ordered from
Access Statistics for this paper
More papers in NBER Working Papers from National Bureau of Economic Research, Inc National Bureau of Economic Research, 1050 Massachusetts Avenue Cambridge, MA 02138, U.S.A.. Contact information at EDIRC.
Series data maintained by ().