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Alternatives to Fiscal Austerity in Spain [PDF]
This paper looks at the planned austerity measures in Spain, the rationale for the spending cuts and tax increases, likely outcomes for future debt-to-GDP ratios, and the probable results of alternative policies.
Mark Weisbrot, Juan Antonio Montecino
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The Myth of Expansionary Fiscal Austerity [PDF]
Recently governments, economists, and international financial institutions have been debating the merits of further fiscal stimulus to combat the Great Recession versus fiscal austerity or “adjustment” – that is, higher taxes and/or lower government spending – to combat budget deficits.
Dean Baker
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Fiscal austerity and public servant quality [PDF]
In this article we use a simple model to analyze the forces that determine the size of the public sector and the quality of workers employed in that sector. Workers are heterogeneous, and the public sector chooses an employment strategy which maximizes a utility function U(s, Y) that depends on the share of the labor force employed in public service s ...
Nadeem Ul Haque +2 more
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Fiscal austerity and unemployment
Review of Economic Dynamics, 2019Abstract This paper studies the joint dynamics of fiscal deficits and unemployment in a neoclassical growth model with distortionary taxation, labor market search frictions, and real wage rigidities. First, we show that a tax increase or a reduction in government spending can improve the fiscal balance at the expense of a higher unemployment rate ...
Ruy Lama, Juan Pablo Medina
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