Fiscal policy and fiscal fragility : empirical evidence from the OECD / Makram El-Shagi, Gregor von Schweinitz
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Fiscal policy and fiscal fragility
Discovery
1667222317
URN
urn:nbn:de:gbv:3:2-107570
DOI
ISBN
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Skalierung
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Publication history
Halle (Saale), Germany : Halle Institute for Economic Research (IWH) - Member of the Leibniz Association, 11. Juni 2019
Content
1 Online-Ressource (III, 26 Seiten, 0,71 MB) : Diagramme
Edition
Language
eng
Comment
Abstract
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.
Series
IWH-Diskussionspapiere ; 2019, no. 13 (June 2019) ppn:837399270