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Macroeconomic effects of Catalan fiscal deficit with the Spanish state (2002-2010)

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  • Jordi Pons-i-Novell
  • Ramon Tremosa-i-Balcells

Abstract

According to Eurostat Regional data for the period 1996-1999 Catalan convergence with the EU's most dynamic regions has been blocked. In this paper, with the aim to analyse how Catalonia can converge with the EU in the forthcoming years, some simulations of Catalan GDP growth in the 2010 horizon have been estimated, considering different reduction scenarios of Catalan fiscal deficit with the Spanish state (between 7-9% of Catalan yearly GDP). Looking at the results obtained, the current Catalan stagnation will persist for the next few years if the above-mentioned fiscal deficit does not change. Thus, Catalonia will only converge with most dynamic EU regions if there is a significant reduction of Catalan fiscal deficit with the Spanish state.

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Bibliographic Info

Article provided by Taylor & Francis Journals in its journal Applied Economics.

Volume (Year): 37 (2005)
Issue (Month): 13 ()
Pages: 1455-1463

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Handle: RePEc:taf:applec:v:37:y:2005:i:13:p:1455-1463

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References

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  1. Abadie, Alberto & Gardeazabal, Javier, 2001. "The Economic Costs of Conflict: A Case-Control Study for the Basque Country," Working Paper Series rwp01-048, Harvard University, John F. Kennedy School of Government.
  2. Olivier Blanchard & Roberto Perotti, 2002. "An Empirical Characterization Of The Dynamic Effects Of Changes In Government Spending And Taxes On Output," The Quarterly Journal of Economics, MIT Press, vol. 117(4), pages 1329-1368, November.
  3. Joan Costa-i-Font & Ramon Tremosa-i-Balcells, 2003. "Spanish Regions and the Macroeconomic Benefits of the European Monetary Union," Regional Studies, Taylor & Francis Journals, vol. 37(3), pages 217-226.
  4. William D. Nordhaus, 2002. "The Economic Consequences of a War with Iraq," Cowles Foundation Discussion Papers 1387, Cowles Foundation for Research in Economics, Yale University.
  5. Joan Costa-i-Font & Ramon Tremosa-i-Balcells, . "Spanish Regions and the Macroeconomic Benefits of European Monetary Union (EMU)," Studies on the Spanish Economy 89, FEDEA.
  6. Stefan Mittnik & Thorsten Neumann, 2001. "Dynamic effects of public investment: Vector autoregressive evidence from six industrialized countries," Empirical Economics, Springer, vol. 26(2), pages 429-446.
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Cited by:
  1. Joan Costa-i-Font, 2010. "Unveiling Vertical State Downscaling: Identity and/or the Economy?," Europe in Question Discussion Paper Series of the London School of Economics (LEQs) 0, London School of Economics / European Institute.
  2. Joan Costa-i-Font, 2010. "Unveiling Vertical State Downscaling: Identity and/or the Economy?," LEQS – LSE 'Europe in Question' Discussion Paper Series 20, European Institute, LSE.

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