Expansionary fiscal contractions?

Vincent Hogan ()

No 200103, Working Papers from School of Economics, University College Dublin

Abstract: We examine the usefulness of the Expansionary Fiscal Contraction hypothesis in explaining the performance of the Irish and Danish economies. We find some evidence in favour of a weak version of the EFC hypotheisis: If the budget deficit is reduced in response to a fiscal crisis, consumption does seem to increase. However this increase is not enough to offset the direct effect of a reduction in the deficit on output- fiscal contractions are not literally expansionary.

Keywords: Fiscal policy--Ireland; Fiscal policy--Denmark (search for similar items in EconPapers)
Date: 2001-02
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
http://hdl.handle.net/10197/925 First version, 2001 (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:ucn:wpaper:200103

Access Statistics for this paper

More papers in Working Papers from School of Economics, University College Dublin Contact information at EDIRC.
Bibliographic data for series maintained by Nicolas Clifton ().