EFFECTS OF FISCAL CONSOLIDATION ON REGIONAL ECONOMICS RESILIENCE: INSTITUTIONAL DESIGN METTERS?

Christophe Feder and Vinko Mustra ()
Additional contact information
Vinko Mustra: Assistant professor, Faculty of economics, business and tourism, University of Split, Cvite Fiskovi?a 5, Split, Croatia

Regional Science Inquiry, 2018, vol. X, issue 1, 37-45

Abstract: After the Great Recession, in the European Union (EU) emerges an heterogenous level of both national fiscal consolidation and regional economics resilience. The paper uses the EUROSTAT database of EU-27 at NUTS 2 level over the period 2000-2009 to test how fiscal consolidation affects the regional economics resilience. We find that the fiscal consolidation and regional economic resilience are negatively correlated. Moreover, we show that the negative effect of taxation is higher than the positive effect of public spending.

Keywords: After the Great Recession; in the European Union (EU) emerges an heterogenous level of both national fiscal consolidation and regional economics resilience. The paper uses the EUROSTAT database of EU-27 at NUTS 2 level over the period 2000-2009 to test how fiscal consolidation affects the regional economics resilience. We find that the fiscal consolidation and regional economic resilience are negatively correlated. Moreover; we show that the negative effect of taxation is higher than the positive effect of public spending. (search for similar items in EconPapers)
JEL-codes: E62 H23 H72 R12 (search for similar items in EconPapers)
Date: 2018
References: Add references at CitEc
Citations: View citations in EconPapers (3)

Downloads: (external link)
http://www.rsijournal.eu/ARTICLES/June_2018/4.pdf (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:hrs:journl:v:x:y:2018:i:1:p:37-45

Access Statistics for this article

Regional Science Inquiry is currently edited by Dr Christos Ap. Ladias

More articles in Regional Science Inquiry from Hellenic Association of Regional Scientists
Bibliographic data for series maintained by Dimitrios K. Kouzas ().