The Design of Fiscal Adjustments

Alberto Alesina and Silvia Ardagna

Scholarly Articles from Harvard University Department of Economics

Abstract: This paper offers three results. First, in line with the previous literature, we confirm that fiscal adjustments based mostly on the spending side are less likely to be reversed. Second, spending based fiscal adjustments have caused smaller recessions than tax based fiscal adjustments. Finally, certain combinations of policies have made it possible for spending based fiscal adjustments to be associated with growth in the economy even on impact rather than with a recession. Thus, expansionary fiscal adjustments are possible.

Date: 2013
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Published in Tax Policy and the Economy

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Related works:
Chapter: The Design of Fiscal Adjustments (2013)
Journal Article: The Design of Fiscal Adjustments (2013)
Working Paper: The design of fiscal adjustments (2012)
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Persistent link: https://EconPapers.repec.org/RePEc:hrv:faseco:22801843

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