We review the debate surrounding the macroeconomic effects of deficit reduction policies
(austerity). The discussion about" austerity" in general has distracted commentators and …

We study the persistent effects of temporary changes in US federal corporate and personal
income tax rates using a narrative identification approach. A corporate income tax cut leads …

We estimate the effects of fiscal consolidation on economic activity based on a new narrative
data set for 14 emerging economies in Latin America and the Caribbean (LAC). Following a …

Unusual circumstances often coincide with unusual fiscal policy actions. Much attention has
been paid to estimates of how fiscal policy affects the macroeconomy, but these are typically …

Goods producers increase their capital expenditure and employment in response to a cut in
marginal corporate income tax rates or an increase in investment tax credits. In contrast …

An impulse response is the dynamic average effect of an intervention across horizons. We
use the well-known Kitagawa-Blinder-Oaxaca decomposition to explore a response's …

This paper reviews the main transmission channels of an environmental tax reform shifting
the tax burden from labour to carbon emission. The analysis uses a simple open-economy …

The impact of fiscal policy on economic activity is still a matter of great debate. And, ever
since Keynes first commented on it, interwar Britain, 1918–39, has remained a particularly …

Fiscal policy is one of the instruments used by the government in dealing with economic
crises. The recent COVID-19 pandemic crisis has different characteristics from the previous …

The pandemic dealt a severe blow to Latin America and the Caribbean, inflicting
unfathomable human suffering and exacting a heavy economic toll. It has left many scars in …