We derive a set of stylized facts on the effects of non-systematic fiscal policy in the four largest countries of the Euro area. We find relevant differences across countries in the effects of non-systematic fiscal policy, and substantial uncertainty about the size of these effects. Yet, in general, expenditure shocks are usually rather ineffective in increasing output growth, and can require deficit financing. Tax policies also appear to have minor effects on output, but usually tax increases do not have negative effects. Disaggregating expenditures and receipts yields some interesting results, in particular increases in government consumption decrease output in all countries, while social benefits can increase it.
Some stylized facts on fiscal policy in the Euro area
MARCELLINO, MASSIMILIANO
2006
Abstract
We derive a set of stylized facts on the effects of non-systematic fiscal policy in the four largest countries of the Euro area. We find relevant differences across countries in the effects of non-systematic fiscal policy, and substantial uncertainty about the size of these effects. Yet, in general, expenditure shocks are usually rather ineffective in increasing output growth, and can require deficit financing. Tax policies also appear to have minor effects on output, but usually tax increases do not have negative effects. Disaggregating expenditures and receipts yields some interesting results, in particular increases in government consumption decrease output in all countries, while social benefits can increase it.
I documenti in IRIS sono protetti da copyright e tutti i diritti sono riservati, salvo diversa indicazione.
