The design of fiscal consolidation : measures in the European Unión distributional effects and implications for macro - economic recovery by Alari Paulus, Francesco Figari and Holly Sutherland
By: Paulus, Alari
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Contributor(s): Figari, Francesco | Sutherland, Holly.
Material type: 
ArticlePublisher: 2017Subject(s): POLITICA FISCAL | CONSOLIDACION | POLITICA DE GASTO PUBLICO | GASTO PUBLICO | PRESUPUESTOS | REDUCCION | UNION EUROPEA
In:
Oxford Economic Papers v. 69, n. 3, July 2017, p. 632-654Summary: The paper considers the austerity measures introduced in the wake of the financialand economic crisis in the late 2000s in relation to their distributional impact acrosshouseholds and potential effects on aggregate demand.We determine the size, composition and effects of fiscal consolidation using a .bottom-up. measurement strategy and find notable cross-country variation. We show that while richer households tend to bear a greater burden in most countries,combined cuts in public wages and transfers are more likely to affect liquidity-constrained households and thereby aggregate demand, casting doubts on the presumed effectiveness of such measures for macro-economic recovery. This suggests that in order to reach robust policy conclusions it is important to consider the distributional patterns of detailed policy measures.
| Item type | Current location | Home library | Call number | Status | Date due | Barcode |
|---|---|---|---|---|---|---|
| IEF | OP 286/2017/3 (Browse shelf) | Available | OP 286/2017/3 |
Disponible en línea a través de la Biblioteca del Instituto de Estudios Fiscales. Resumen. Bibliografía.
The paper considers the austerity measures introduced in the wake of the financialand economic crisis in the late 2000s in relation to their distributional impact acrosshouseholds and potential effects on aggregate demand.We determine the size, composition and effects of fiscal consolidation using a .bottom-up. measurement strategy and find notable cross-country variation. We show that while richer households tend to bear a greater burden in most countries,combined cuts in public wages and transfers are more likely to affect liquidity-constrained households and thereby aggregate demand, casting doubts on the presumed effectiveness of such measures for macro-economic recovery. This suggests that in order to reach robust policy conclusions it is important to consider the distributional patterns of detailed policy measures.
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