Arbeitspapier
Fiscal policy and fiscal fragility: Empirical evidence from the OECD
In this paper, we use local projections to investigate the impact of consolidation shocks on GDP growth, conditional on the fragility of government finances. Based on a database of fiscal plans in OECD countries, we show that spending shocks are less detrimental than tax-based consolidation. In times of fiscal fragility, our results indicate strongly that governments should consolidate through surprise policy changes rather than announcements of consolidation at a later horizon.
- Language
-
Englisch
- Bibliographic citation
-
Series: IWH Discussion Papers ; No. 13/2019
- Classification
-
Wirtschaft
Fiscal Policy
National Debt; Debt Management; Sovereign Debt
- Subject
-
fiscal multipliers
fiscal consolidation
local projections
- Event
-
Geistige Schöpfung
- (who)
-
El-Shagi, Makram
von Schweinitz, Gregor
- Event
-
Veröffentlichung
- (who)
-
Leibniz-Institut für Wirtschaftsforschung Halle (IWH)
- (where)
-
Halle (Saale)
- (when)
-
2019
- Handle
- URN
-
urn:nbn:de:gbv:3:2-107570
- Last update
-
10.03.2025, 11:43 AM CET
Data provider
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ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. If you have any questions about the object, please contact the data provider.
Object type
- Arbeitspapier
Associated
- El-Shagi, Makram
- von Schweinitz, Gregor
- Leibniz-Institut für Wirtschaftsforschung Halle (IWH)
Time of origin
- 2019
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Market power and fiscal policy in OECD countries
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Fiscal Rules and Effective Fiscal Policy
Fiscal Transparency and Procyclical Fiscal Policy
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Fiscal Policy and Fiscal Fragility: Empirical Evidence from the OECD
Fiscal Rules, Discretionary Fiscal Policy and Macroeconomic Stability: An Empirical Assessment for OECD Countries
Fiscal Rules, Discretionary Fiscal Policy and Macroeconomic Stability: An Empirical Assessment for OECD Countries
Fiscal Transparency and Fiscal Policy Outcomes in OECD Countries
Financial Fragility and the Fiscal Multiplier
Partial Fiscal Decentralization and Sub-National Government Fiscal Discipline: Empirical Evidence from OECD Countries
Market power and fiscal policy in OECD countries
Fiscal rules, fiscal space and procyclical fiscal policy
Fiscal anchors and sustainable fiscal policy
Fiscal Rules and Effective Fiscal Policy
Fiscal Transparency and Procyclical Fiscal Policy