A New Action-Based Dataset of Fiscal Consolidation

Devries, Pete; Guajardo, Jaime; Leigh, Daniel; Pescatori, Andrea

doi:10.2139/ssrn.1861798

Cited by 54 publications

(45 citation statements)

References 0 publications

Supporting

Mentioning

Contrasting

Unclassified

Order By: Relevance

“…In case of OECD and the European countries, the studies of Alesina et al (2015) and Bazgan (2019) suggest that spending-based adjustments are on average more durable and expansionary, or are mildly recessionary. Similar conclusion was also shown by Alesina et al (1998), Devries et al (2011), and Alesina et al (2017). But there are studies that report somewhat different conclusions regarding the impact of the fiscal austerity.…”

Section: Review Of Literaturesupporting

confidence: 71%

“…This table also isolates expansionary FA from contractionary ones on the basis of Definition 2. Following Devries et al (2011), the current study declares a period of FA to be spending-based if the fall in the CAPS, in absolute term, exceeds the rise in the cyclically adjusted revenue (CAR). Comparing the FA in terms of expansion and contraction, eight FAs are found to be expansionary and only three are contractionary.…”

Section: Identifying the Discretionary Fiscal Actions In Pakistanmentioning

confidence: 99%

See 1 more Smart Citation

A Dynamic Analysis of the Impact of Fiscal Adjustment on Economic Growth: Evidence From Pakistan

Hussain

Ali

et al. 2021

SAGE Open

View full text Add to dashboard Cite

This study claims to be the first in assessing the short-run and long-run impacts of both the size and composition of fiscal adjustment on the growth in Pakistan. Empirical calibration has been made on Mankiw et al.’s model, while the Autoregressive Distributed Lag (ARDL) techniques of Pesaran et al. have been employed to carry out the estimation. To cure the problem of degenerate cases, the ARDL techniques have been augmented with the model of Sam et al. The analysis supports the hypothesis of “expansionary fiscal contraction” in the long run. The analysis reveals that the spending-based adjustment enhances the economic growth, whereas the tax-based adjustment would reduce the growth in the long run in the case of Pakistan. The Granger causality test indicates that the fiscal adjustments have been weakly exogenous, thereby allowing feedback effect from the economic growth toward the fiscal adjustment. Thus, the objective of sustained economic growth can be achieved through the spending-based consolidation measures.

show abstract

Section: Review Of Literaturesupporting

confidence: 71%

Section: Identifying the Discretionary Fiscal Actions In Pakistanmentioning

confidence: 99%

A Dynamic Analysis of the Impact of Fiscal Adjustment on Economic Growth: Evidence From Pakistan

Hussain

Ali

et al. 2021

SAGE Open

View full text Add to dashboard Cite

show abstract

“…2 2 A similar dataset that includes Germany in the sample was constructed by Devries et al . (2011) and extended by Alesina et al . (2020).…”

mentioning

confidence: 70%

Macroeconomic Effects of the Anticipation and Implementation of Tax Changes in Germany: Evidence from a Narrative Account

2021

View full text Add to dashboard Cite

This paper quantifies the dynamic macroeconomic effects of tax changes in Germany, allowing for anticipation effects of preannounced tax reforms. Identification is achieved using a narrative approach, which provides information about the timing of tax reforms. An anticipated cut in taxes has a positive effect on output with a peak multiplier of 1.7, not observed until nine quarters after implementation. This positive effect is accompanied by significant negative anticipation effects on output, consumption, investment, hours worked and wages. Our results suggest that policymakers should take anticipation effects into account when implementing fiscal policy measures.

show abstract

“…Additionally, it would correct any potential reverse causality issue in this inequality-discretion context, although as argued before it seems to be practically nonexistent. An ex-ample of the narrative approach adapted to the EU is the identification of fiscal consolidation episodes developed by Devries et al, 2011. In addition, further research on this paper and the implementation of new methodologies would be required. Including multivariate systems like VARs to introduce the interaction between income shares, for instance.…”

Section: Discussionmentioning

confidence: 99%

The dynamic effects of fiscal discretion on income distribution in the EU-27

Flores

2022

Preprint

View full text Add to dashboard Cite

Based on panel data for the EU-27 from 1990 to 2017, this paper develops a novel three-steps framework to assess the dynamic effects of spending-based discretionary fiscal policy on income distribution and inequality. The steps are the following: 1) extract the discretionary fiscal component by estimating a well-known fiscal rule model, 2) use that com- ponent to estimate the dynamics of income distribution given a discretion’s shock by ARDL models and 3) investigate the short-, medium- and long-term effects by computing IRFs via Local Projections by Jordà, 2005. Overall, I find supportive evidence on the heterogeneity in the response of income distribution to discretionary changes in government spending and a weak performance of discretion in terms of income redistribution durability. Such hetero- geneity is shown as i) a significant and positive, yet transitory, income redistributive power of discretion and ii) a persistent and detrimental impact on the top 1 share of the distribution. In addition, these results complement with i) significant in the short-term and ii) persistent in the long-run inequality alleviation. Such results are robust to multiple specifications regarding lag selection criteria, time indicators inclusion and sign non-linearities (asymmetries).

show abstract

A New Action-Based Dataset of Fiscal Consolidation

Cited by 54 publications

References 0 publications

A Dynamic Analysis of the Impact of Fiscal Adjustment on Economic Growth: Evidence From Pakistan

A Dynamic Analysis of the Impact of Fiscal Adjustment on Economic Growth: Evidence From Pakistan

Macroeconomic Effects of the Anticipation and Implementation of Tax Changes in Germany: Evidence from a Narrative Account

The dynamic effects of fiscal discretion on income distribution in the EU-27

Contact Info

Product

Resources

About