Paulus, A and Figari, F and Sutherland, H (2017) The design of fiscal consolidation measures in the European Union: distributional effects and implications for macro-economic recovery. Oxford Economic Papers, 69 (3). pp. 632-654. DOI https://doi.org/10.1093/oep/gpw054
Paulus, A and Figari, F and Sutherland, H (2017) The design of fiscal consolidation measures in the European Union: distributional effects and implications for macro-economic recovery. Oxford Economic Papers, 69 (3). pp. 632-654. DOI https://doi.org/10.1093/oep/gpw054
Paulus, A and Figari, F and Sutherland, H (2017) The design of fiscal consolidation measures in the European Union: distributional effects and implications for macro-economic recovery. Oxford Economic Papers, 69 (3). pp. 632-654. DOI https://doi.org/10.1093/oep/gpw054
Abstract
The paper considers the austerity measures introduced in the wake of the financial and economic crisis in the late 2000s in relation to their distributional impact across households and potential effects on aggregate demand. We determine the size, composition and effects of fiscal consolidation using a 'bottom-up' measurement strategy and find notable cross-country variation. We show that while richer households tend to bear a greater burden in most countries, combined cuts in public wages and transfers are more likely to affect liquidity-constrained households and thereby aggregate demand, casting doubts on the presumed effectiveness of such measures for macro-economic recovery. This suggests that in order to reach robust policy conclusions it is important to consider the distributional patterns of detailed policy measures.
Item Type: | Article |
---|---|
Subjects: | H Social Sciences > H Social Sciences (General) H Social Sciences > HJ Public Finance J Political Science > JN Political institutions (Europe) |
Divisions: | Faculty of Social Sciences Faculty of Social Sciences > Institute for Social and Economic Research |
SWORD Depositor: | Unnamed user with email elements@essex.ac.uk |
Depositing User: | Unnamed user with email elements@essex.ac.uk |
Date Deposited: | 09 Sep 2016 12:44 |
Last Modified: | 16 May 2024 17:42 |
URI: | http://repository.essex.ac.uk/id/eprint/17567 |
Available files
Filename: gpw054.pdf
Licence: Creative Commons: Attribution 3.0