Fiscal consolidation after the Great Recession:the role of composition

Iván Kataryniuk and Javier Valles

No 1515, Working Papers from Banco de España

Abstract: We have examined the fiscal consolidation episodes in a group of OECD countries from 2009 to 2014. The range of the estimated short-term fiscal multiplier runs from 1.2% to 2% of GDP, larger than those obtained in more “normal times”, implying that the contractionary effect has been greater in depressed environments. Nevertheless, we have also found that revenue measures have a higher and more persistent real impact than expenditure measures, which is more consistent with the literature and suggests that expenditure cuts are less harmful for the economy than tax hikes

Keywords: fiscal multipliers; fiscal policy; crisis management (search for similar items in EconPapers)
JEL-codes: E12 E62 E63 H12 (search for similar items in EconPapers)
Pages: 32 pages
Date: 2015-06
New Economics Papers: this item is included in nep-mac
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (15)

Downloads: (external link)
http://www.bde.es/f/webbde/SES/Secciones/Publicaci ... /15/Fich/dt1515e.pdf First version, June 2015 (application/pdf)

Related works:
Journal Article: Fiscal consolidation after the Great Recession: the role of composition (2018)
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:bde:wpaper:1515

Access Statistics for this paper

More papers in Working Papers from Banco de España Contact information at EDIRC.
Bibliographic data for series maintained by Ángel Rodríguez. Electronic Dissemination of Information Unit. Research Department. Banco de España ().