The Dutch experience: Assessing the welfare impacts of two consolidation strategies using a heterogeneous-agent framework

Miguel Viegas and Ana Ribeiro

Economic Modelling, 2013, vol. 32, issue C, 351-360

Abstract: Between 1990 and 2010, the Dutch government pursued two successful fiscal adjustments: first, in 1995–2002, through a pure expenditure-based strategy and second, in 2004–2007, through a mixed strategy based on social transfer cuts and tax increases. In order to assess welfare and, in particular, inequality effects involved in each episode, we built a general equilibrium model with heterogeneous-agent capable of exploring the relationship between fiscal policy variables and the endogenous cross-section distribution of income, wealth and welfare.

Keywords: Fiscal consolidation dynamics; European Union; Heterogeneous-agent model; Netherlands; Inequality; Welfare (search for similar items in EconPapers)
JEL-codes: E17 E60 H60 I30 (search for similar items in EconPapers)
Date: 2013
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Citations: View citations in EconPapers (1)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:ecmode:v:32:y:2013:i:c:p:351-360

DOI: 10.1016/j.econmod.2013.02.025

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