Expansionary fiscal contractions? Evidence from panel data

Files in This Item:
File Description SizeFormat 
hoganv_workpap_013.pdf189.04 kBAdobe PDFDownload
Title: Expansionary fiscal contractions? Evidence from panel data
Authors: Hogan, Vincent (Vincent Peter)
Permanent link: http://hdl.handle.net/10197/933
Date: Jan-2003
Abstract: We examine the ability of the Expansionary Fiscal Contraction (EFC) hypothesis to explain the performance of of OECD economies during times of crisis. We find some limited evidence in its favour: if public consumption is reduced in response to a fiscal crisis (as defined by a high level of debt), private consumption does seem to increase. However the size of the effect is smaller than that typically found in similar studies. Furthermore, the increase in private consumption is not usually sufficient to offset the direct effect of a reduction in the public consumption on output fiscal contractions are not literally expansionary.
Type of material: Working Paper
Publisher: University College Dublin. School of Economics
Copyright (published version): UCD School of Economics 2003
Keywords: Consumption;Saving;Fiscal policy
Subject LCSH: Organisation for Economic Co-operation and Development
Fiscal policy
Saving and investment
Language: en
Status of Item: Not peer reviewed
Appears in Collections:Economics Working Papers & Policy Papers

Show full item record

Google ScholarTM

Check


This item is available under the Attribution-NonCommercial-NoDerivs 3.0 Ireland. No item may be reproduced for commercial purposes. For other possible restrictions on use please refer to the publisher's URL where this is made available, or to notes contained in the item itself. Other terms may apply.