Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/209707
Authors: 
Acocella, Nicola
Beqiraj, Elton
Di Bartolomeo, Giovanni
Di Pietro, Marco
Felici, Francesco
Year of Publication: 
2019
Publisher: 
ZBW – Leibniz Information Centre for Economics, Kiel, Hamburg
Abstract: 
What advice can be given to the policymaker to reduce the burden of public debt after a crisis? In this situation, the debt consolidation calls for fiscal surplus based on increases in taxes and/or reductions in public spending. This paper aims at answering to the above question. Specifically, it evaluates different policy options on the table using the estimated model of the Italian dynamic General Equilibrium Model (IGEM). Our main message is that plans aimed at reducing the public debt based on tax increases rather than expenditure reductions are more effective. Therefore, consolidation should be designed on the former.
Subjects: 
Austerity
Public debt
Output
Fiscal adjustment plans
JEL: 
E60
E62
Document Type: 
Working Paper

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