Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/153109
Authors: 
Afonso, António
Year of Publication: 
2006
Series/Report no.: 
ECB Working Paper 675
Abstract: 
In order to assess the existence of expansionary fiscal consolidations in Europe, panel data models for private consumption are estimated for the EU15 countries, using annual data over the period 1970–2005. Three alternative approaches to determine fiscal episodes are used, and the level of government indebtedness is also taken into account. The results show some evidence in favour of the existence of expansionary fiscal consolidations, for a few budgetary spending items (general government final consumption, social transfers, and taxes), depending on the specification and on the time span used. On the other hand, the possibility of asymmetric effects of fiscal episodes does not seem to be corroborated by the results.
Subjects: 
European Union
expansionary fiscal consolidations
Fiscal Policy
non-Keynesian effects
panel data models
JEL: 
C23
E21
E62
Document Type: 
Working Paper

Files in This Item:
File
Size
618.95 kB





Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.