Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/69586
Authors: 
Cafiso, Gianluca
Cellini, Roberto
Year of Publication: 
2012
Series/Report no.: 
CESifo Working Paper: Policy, Macroeconomics and Growth 4027
Abstract: 
The objective of this paper is to gain insights into the relationship between deficit-reducing policies and the evolution of the debt/GDP ratio. We consider past events of fiscal consolidation in a selected group of EU countries, by using the new data set recently made available by Devries et al. (2011), and check what is the associated change of the debt/GDP ratio both from a short and medium-term perspective. Our results show that a favourable short-term response emerges in the majority of the countries considered, while the medium-term one is adverse for all. The analysis provides information to assess the convenience of deficit-reducing policies to contain or invert the evolution of the debt/GDP ratio.
Subjects: 
fiscal consolidation
debt/GDP ratio
European Union
JEL: 
H63
E63
Document Type: 
Working Paper

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