2010 · 31 citations · 11 references
Fiscal IssueLawFiscal ImbalancesEconomic AnalysisBoosted GrowthFiscal PolicyEconomicsPublic PolicyPolitical Budget CycleFinanceGovernment BudgetPublic FinanceFederal TaxFederal Income TaxEconomic PolicyMacroeconomicsMajor Fiscal CorrectionBusinessFiscal StimulusFiscal Adjustment
In a review of every major fiscal correction in the OECD since 1975, we find that decisive budgetary adjustments that have focused on reducing government expenditure have (i) been successful in correcting fiscal imbalances; (ii) typically boosted growth; and (iii) resulted in significant bond and equity market outperformance. Tax-driven fiscal adjustments, by contrast, typically fail to correct fiscal imbalances and are damaging for growth.
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Fiscal Policy in General Equilibrium
Marianne Baxter, Robert G. King · American Economic Review · 1990 · 1.4K citations
Fiscal Policy in Good Times and Bad
Roberto Perotti · The Quarterly Journal of Economics · 1999 · 687 citations
Output Effects of Government Purchases
Robert J. Barro · Journal of Political Economy · 1981 · 676 citations · Full text
Large Changes in Fiscal Policy: Taxes Versus Spending
Alberto Alesina, Silvia Ardagna · 2009 · 638 citations · Full text