On the Composition of Public Spending and Taxes

Arbeitspapier

This paper studies the implications of changes in the fiscal (spending-tax) policy mix when all categories of spending and taxes are according to their functional breakdown. In so doing, we build a general equilibrium OLG model which naturally incorporates the main functional categories of public spending and taxes as in the euro area. Departing from the crisis year of 2008, the main result is that an increase in public spending on education and health would have outperformed all other changes in fiscal policy that have either happened or have been debated in policy circles.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: CESifo Working Paper ; No. 5510

Classification and Topics

• Classification: Wirtschaft ; National Government Expenditures and Related Policies: General ; Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook: General
• Subject: government expenditure ; public finance

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Economides, George ; Park, Hyun ; Philippopoulos, Apostolis ; Sakkas, Stelios
• Event: Veröffentlichung
• (who): Center for Economic Studies and ifo Institute (CESifo)
• (where): Munich
• (when): 2015

Further information

• Handle: http://hdl.handle.net/10419/123153
• Last update: 10.03.2025, 11:43 AM CET