IWH Bankruptcy Research
IWH Bankrupcty Research The Bankrupcty Research Unit of the Halle Institute for...
Fiscal Policy and Fiscal Fragility: Empirical Evidence from the OECD
IWH Discussion Papers,
In this paper, we use local projections to investigate the impact of consolidation shocks on GDP growth, conditional on the fragility of government finances. Based on a database of fiscal plans in OECD countries, we show that spending shocks are less detrimental than tax-based consolidation. In times of fiscal fragility, our results indicate strongly that governments should consolidate through surprise policy changes rather than announcements of consolidation at a later horizon.
The CompNet Competitiveness Database The Competitiveness Research Network (CompNet)...
Brown Bag Seminar
Brown Bag Seminar Financial Markets Department The seminar series "Brown...
Does Extended Unemployment Benefit Duration Ameliorate the Negative Employment Effects of Job Loss? ...
East Germany Rearguard Only investments in education will lead to a further catch-up ...
Should We Use Linearized Models To Calculate Fiscal Multipliers?
Journal of Applied Econometrics,
We calculate the magnitude of the government consumption multiplier in linearized and nonlinear solutions of a New Keynesian model at the zero lower bound. Importantly, the model is amended with real rigidities to simultaneously account for the macroeconomic evidence of a low Phillips curve slope and the microeconomic evidence of frequent price changes. We show that the nonlinear solution is associated with a much smaller multiplier than the linearized solution in long-lived liquidity traps, and pin down the key features in the model which account for the di¤erence. Our results caution against the common practice of using linearized models to calculate scal multipliers in long-lived liquidity traps.
Data Protection Policy ...
Speed Projects Here you can find the Speed Projects in chronologically descending...