Umfang:
1 Online-Ressource (circa 38 Seiten)
,
Illustrationen
ISBN:
9781484304372
Serie:
IMF working paper WP/17, 140
Inhalt:
This paper revisits the issue of cross-country spillovers from fiscal consolidations using an innovative empirical methodology. We find evidence in support of fiscal spillovers in 10 euro area countries. Fiscal consolidation in one country not only reduces domestic output (direct effect), but also the output of other member countries (indirect/spillover effect). Fiscal spillovers are larger for: (i) more closely located and economically integrated countries, and (ii) fiscal shocks originating from relatively larger countries. On average, 1 percent of GDP fiscal consolidation in 10 euro area countries reduces the combined output by 0.6 percent on impact, out of which half is driven by indirect effects from fiscal spillovers. The impact peters out and becomes insignificant over the medium-term. It is largely driven by tax measures, which have a relatively stronger effect on output compared to expenditure measures. The results are robust to alternative measures of bilateral links across countries
Weitere Ausg.:
Erscheint auch als Druck-Ausgabe Poghosyan, Tigran Cross-Country Spillovers of Fiscal Consolidations in the Euro Area Washington, D.C. : International Monetary Fund, 2017 ISBN 9781484304372
Sprache:
Englisch
Schlagwort(e):
Arbeitspapier
;
Graue Literatur
DOI:
10.5089/9781484304372.001
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