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A More Precise Approach to Fiscal Consolidation and Sustainability

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  • Afonso, Sérgio

Abstract

This paper argues that austerity is not a good solution for fiscal consolidation and sustainability. Therefore, it is imperative to find a new approach. This paper presents a mechanism to improve both tax compliance and fiscal sustainability.

Suggested Citation

  • Afonso, Sérgio, 2016. "A More Precise Approach to Fiscal Consolidation and Sustainability," MPRA Paper 69072, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:69072
    as

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    File URL: https://mpra.ub.uni-muenchen.de/69072/1/MPRA_paper_69072.pdf
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    References listed on IDEAS

    as
    1. Yanos Zylberberg & Francesco Pappada, 2014. "Austerity plans and tax evasion : theory and evidence from Greece," 2014 Meeting Papers 1031, Society for Economic Dynamics.
    2. Olivier J. Blanchard & Daniel Leigh, 2013. "Growth Forecast Errors and Fiscal Multipliers," American Economic Review, American Economic Association, vol. 103(3), pages 117-120, May.
    3. Dawn Holland & Jonathan Portes, 2012. "Self-Defeating Austerity?," National Institute Economic Review, National Institute of Economic and Social Research, vol. 222(1), pages 4-10, October.
    4. De Grauwe, Paul & Ji, Yuemei, 2013. "The Legacy of Austerity in the Eurozone," CEPS Papers 8472, Centre for European Policy Studies.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    fiscal consolidation; fiscal sustainability; formalization;
    All these keywords.

    JEL classification:

    • H21 - Public Economics - - Taxation, Subsidies, and Revenue - - - Efficiency; Optimal Taxation
    • H26 - Public Economics - - Taxation, Subsidies, and Revenue - - - Tax Evasion and Avoidance
    • H30 - Public Economics - - Fiscal Policies and Behavior of Economic Agents - - - General
    • H61 - Public Economics - - National Budget, Deficit, and Debt - - - Budget; Budget Systems
    • H63 - Public Economics - - National Budget, Deficit, and Debt - - - Debt; Debt Management; Sovereign Debt

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