A1 - Gianluca Cafiso
A1 - Roberto Cellini
TI - Fiscal Consolidations and Public Debt in Europe
IS - 2013-35
T3 - Working Papers
KW - Fiscal consolidations
KW - debt/GDP ratio
KW - Europe
N2 - The objective of this paper is to gain insights into the relationship between deficit-reducing policies and the evolution of the debt/GDP ratio. We consider past events of fiscal consolidation in a selected group of EU countries and check what is the associated change of the debt/GDP ratio both from a short and medium-term perspective. As for the medium-term perspective, we do also differentiate between tax-based and savings-based fiscal consolidations. Our results point towards a positive short-term effect, while the medium-term effect turns out to be negative. Savingsbased fiscal consolidations result to be less negative on the debt/GDP ratio’s evolution than tax-based ones.
ER -