The design of fiscal adjustments
AbstractThis paper offers three results. First, in line with the previous literature, we confirm that fiscal adjustments based mostly on the spending side are less likely to be reversed. Second, spending based fiscal adjustments have caused smaller recessions than tax based fiscal adjustments. Finally, certain combinations of policies have made it possible for spending based fiscal adjustments to be associated with growth in the economy even on impact rather than with a recession. Thus, expansionary fiscal adjustments are possible.
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Bibliographic InfoPaper provided by National Bureau of Economic Research, Inc in its series NBER Working Papers with number 18423.
Date of creation: Sep 2012
Date of revision:
Publication status: published as Alberto Alesina, Silvia Ardagna. "The Design of Fiscal Adjustments," in Jeffrey R. Brown, editor, "Tax Policy and the Economy, Volume 27" University of Chicago Press (2013)
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Postal: National Bureau of Economic Research, 1050 Massachusetts Avenue Cambridge, MA 02138, U.S.A.
Web page: http://www.nber.org
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Other versions of this item:
- H2 - Public Economics - - Taxation, Subsidies, and Revenue
- H3 - Public Economics - - Fiscal Policies and Behavior of Economic Agents
- H5 - Public Economics - - National Government Expenditures and Related Policies
- H62 - Public Economics - - National Budget, Deficit, and Debt - - - Deficit; Surplus
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by Blog Admin in British Politics and Policy at LSE on 2012-10-24 16:00:33
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