EconPapers    
Economics at your fingertips  
 

Debt Hangover in the Aftermath of the Great Recession

Stéphane Auray, Aurélien Eyquem and Paul Gomme ()

Working Papers from HAL

Abstract: Following the Great Recession, U.S. government debt levels exceeded 100% of output. We develop a macroeconomic model to evaluate the role of various shocks during and after the Great Recession; labor market shocks have the greatest impact on macroeconomic activity. We then evaluate the consequences of using alternative fiscal policy instruments to implement a fiscal austerity program to return the debt-output ratio to its pre-Great Recession level. Our welfare analysis reveals that there is not much difference between applying fiscal austerity through government spending, the labor income tax, or the consumption tax; using the capital income tax is welfare-reducing.

Keywords: Fiscal policies; tax reforms; government debt; government deficits (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-dge and nep-mac
Date: 2018
Note: View the original document on HAL open archive server: https://halshs.archives-ouvertes.fr/halshs-01942719
References: View references in EconPapers View complete reference list from CitEc
Citations: Track citations by RSS feed

Downloads: (external link)
https://halshs.archives-ouvertes.fr/halshs-01942719/document (application/pdf)

Related works:
Journal Article: Debt hangover in the aftermath of the Great Recession (2019) Downloads
Working Paper: Debt Hangover in the Aftermath of the Great Recession (2019)
Working Paper: Debt Hangover in the Aftermath of the Great Recession (2018) Downloads
Working Paper: Debt Hangover in the Aftermath of the Great Recession (2017) Downloads
Working Paper: Debt Hangover in the Aftermath of the Great Recession (2017) Downloads
Working Paper: Debt Hangover in the Aftermath of the Great Recession (2017) Downloads
Working Paper: Debt Hangover in the Aftermath of the Great Recession (2017)
Working Paper: Debt Hangover in the Aftermath of the Great Recession (2017)
Working Paper: Debt Hangover in the Aftermath of the Great Recession (2017)
Working Paper: Debt Hangover in the Aftermath of the Great Recession (2016) Downloads
Working Paper: Debt Hangover in the Aftermath of the Great Recession (2016)
Working Paper: Debt Hangover in the Aftermath of the Great Recession (2016)
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:hal:wpaper:halshs-01942719

Access Statistics for this paper

More papers in Working Papers from HAL
Bibliographic data for series maintained by CCSD ().

 
Page updated 2019-10-14
Handle: RePEc:hal:wpaper:halshs-01942719