Does Fiscal Policy Help Those Who Need It Most? Evidence from the US and the Eurozone
AbstractWith a notion that the eurozone does not have a fiscal federalist system, we analyze the effectiveness of fiscal policy at the country level of the eurozone and the state level of the US. Our empirical analysis shows that, not like the case of the US, the role of fiscal policy for counteracting regional income shocks is far weaker in low-income countries in the eurozone. In addition, the contagion effect of fiscal crises in the eurozone is stronger and this effect becomes stronger in the eurozone after the establishment of the European Union. Our finding provides empirical evidence for fiscal problems in a single-currency area without a fiscal federalist system.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
Bibliographic InfoArticle provided by Taylor and Francis Journals in its journal Global Economic Review.
Volume (Year): 41 (2012)
Issue (Month): 1 (October)
Contact details of provider:
Web page: http://taylorandfrancis.metapress.com/link.asp?target=journal&id=111729
You can help add them by filling out this form.
reading list or among the top items on IDEAS.Access and download statisticsgeneral information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Michael McNulty).
If references are entirely missing, you can add them using this form.