This paper reviews the theoretical and empirical literature on the effectiveness of fiscal
policy. The focus is on the size of fiscal multipliers, and on the possibility that multipliers can …

This paper reviews the state of discretionary fiscal policy. Among its findings are:(1) In recent
years, US discretionary fiscal policy appears to have become more active in response to …

The term “austerity” indicates a policy of sizeable reduction of govern-ment deficits and
stabilization of government debt achieved by means of spending cuts or tax increases, or …

Until recently, economists have been reluctant to rely on culture as a possible determinant of
economic phenomena. Much of this reluctance stems from the very notion of culture: it is so …

We propose and apply a new approach for analyzing the effects of fiscal policy using vector
autoregressions. Specifically, we use sign restrictions to identify a government revenue …

We examine the evidence on episodes of large stances in fiscal policy, in cases of both
fiscal stimuli and fiscal adjustments in OECD countries from 1970 to 2007. Fiscal stimuli …

The global financial crisis triggered severe shocks for developing countries, whose embrace
of greater commercial and financial openness has increased their exposure to external …

This Paper studies the effects of fiscal policy on GDP, inflation and interest rates in five
OECD countries, using a structural Vector Autoregression approach. Its main results can be …

This paper studies how the effects of government spending vary with the economic
environment. Using a panel of OECD countries, we identify fiscal shocks as residuals from …

This paper evaluates the effects of fiscal policy on investment using a panel of OECD
countries. We find a sizeable negative effect of public spending—and in particular of its …