Fiscal consolidation after the Great Recession:the role of composition
Ivan Kataryniuk () and
Javier Vallés ()
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Javier Vallés: Banco de España
No 1515, Working Papers from Banco de España, Working Papers Homepage
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)
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Journal Article: Fiscal consolidation after the Great Recession: the role of composition (2018)
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Persistent link: https://EconPapers.repec.org/RePEc:bde:wpaper:1515
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