 Searching for Non-Keynesian Effects of Fiscal PolicyFrancesco Giavazzi (), Tullio Jappelli () and Marco Pagano CSEF Working Papers from Centre for Studies in Economics and Finance (CSEF), University of Naples, Italy Abstract: We search for the circumstances in which the response of national saving to fiscal policy contradicts conventional Keynesian predictions, using data from 18 OECD countries. The data suggest that non-Keynesian effects tend to be associated with large and persistent fiscal impulses. Such responses can be traced to changes in taxes and transfers more than to changes in government consumption and are stronger for fiscal contractions than expansions. During large contractions an increase in taxes has no effect on national saving. High or rapidly growing public debt is not a good predictor of non-Keynesian effects. Finally, the composition of the fiscal impulse matters: the non-Keynesian effects of a large fiscal contraction are amplified when this is carried out primarily by raising taxes. Keywords: Fiscal policy; national saving; contractionary fiscal expansions (search for similar items in EconPapers) Published in European Economic Review, June 2000, vol. 44, pages 1259-1290 Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:sef:csefwp:16 Access Statistics for this paper More papers in CSEF Working Papers from Centre for Studies in Economics and Finance (CSEF), University of Naples, Italy Contact information at EDIRC. |
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