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Name File Type Size Last Modified
  Alesina_data 10/12/2019 07:01:PM
LICENSE.txt text/plain 14.6 KB 10/12/2019 03:01:PM

Project Citation: 

Alesina, Alberto, Favero, Carlo, and Giavazzi, Francesco. Replication data for: Effects of Austerity: Expenditure- and Tax-Based Approaches. Nashville, TN: American Economic Association [publisher], 2019. Ann Arbor, MI: Inter-university Consortium for Political and Social Research [distributor], 2019-10-12. https://doi.org/10.3886/E114028V1

Project Description

Summary:  View help for Summary We review the debate surrounding the macroeconomic effects of deficit reduction policies (austerity). The discussion about "austerity" in general has distracted commentators and policymakers from a very important result, namely the enormous difference, on average, between expenditure- and tax-based austerity plans. Spending-based austerity plans are remarkably less costly than tax-based plans. The former have on average a close to zero effect on output and lead to a reduction of the debt/GDP ratio. Tax-based plans have the opposite effect and cause large and long-lasting recessions. These results also apply to the recent episodes of European austerity, which in this respect were not especially different from previous cases.

Scope of Project

JEL Classification:  View help for JEL Classification
      E23 Macroeconomics: Production
      E32 Business Fluctuations; Cycles
      E62 Fiscal Policy
      H20 Taxation, Subsidies, and Revenue: General
      H50 National Government Expenditures and Related Policies: General
      H62 National Deficit; Surplus


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