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The Dutch experience: Assessing the welfare impacts of two consolidation strategies using a heterogeneous-agent framework

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  • Viegas, Miguel
  • Ribeiro, Ana Paula

Abstract

Between 1990 and 2010, the Dutch government pursued two successful fiscal adjustments: first, in 1995–2002, through a pure expenditure-based strategy and second, in 2004–2007, through a mixed strategy based on social transfer cuts and tax increases. In order to assess welfare and, in particular, inequality effects involved in each episode, we built a general equilibrium model with heterogeneous-agent capable of exploring the relationship between fiscal policy variables and the endogenous cross-section distribution of income, wealth and welfare.

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Bibliographic Info

Article provided by Elsevier in its journal Economic Modelling.

Volume (Year): 32 (2013)
Issue (Month): C ()
Pages: 351-360

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Handle: RePEc:eee:ecmode:v:32:y:2013:i:c:p:351-360

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Web page: http://www.elsevier.com/locate/inca/30411

Related research

Keywords: Fiscal consolidation dynamics; European Union; Heterogeneous-agent model; Netherlands; Inequality; Welfare;

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