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Fiscal Policies in High Debt Euro-Area Countries

  • Antonella Cavallo
  • Pietro Dallari
  • Antonio Ribba

Table of contents

  1. Front Matter
    Pages i-x
  2. Antonella Cavallo, Pietro Dallari, Antonio Ribba
    Pages 1-10
  3. Antonella Cavallo, Pietro Dallari, Antonio Ribba
    Pages 11-49
  4. Antonella Cavallo, Pietro Dallari, Antonio Ribba
    Pages 51-84
  5. Antonella Cavallo, Pietro Dallari, Antonio Ribba
    Pages 85-111
  6. Antonella Cavallo, Pietro Dallari, Antonio Ribba
    Pages 113-131
  7. Antonella Cavallo, Pietro Dallari, Antonio Ribba
    Pages 133-152
  8. Antonella Cavallo, Pietro Dallari, Antonio Ribba
    Pages 153-176
  9. Back Matter
    Pages 177-178

About this book

Introduction

This book explores the role of national fiscal policies in a selected group of Euro-area countries under the European Economic and Monetary Union (EMU). In particular, the authors characterize the response of output to fiscal consolidations and expansions in the small Euro-area open economies affected by high public and private debt. It is shown that the macroeconomic outcome of fiscal shocks is strongly related to debt levels. The Euro-area countries included in the investigation are Greece, Ireland, Italy, the Netherlands, Spain, and Portugal, over the sample period 1999–2016, i.e., the EMU period. The main econometric tools used in this research are structural vector autoregressive (VAR) models, including panel VAR models. The available literature relating to the subject is also fully reviewed. A further closely investigated topic is the potential spillover effects of German fiscal policies on the selected small Euro-area economies. Moreover, in the perspective of the evolution of the Euro Area towards a full Monetary and Fiscal Union, the authors study the effects of area-wide government spending shocks on aggregate output and other macroeconomic variables during the EMU period. The closing chapter of the book considers evidence on the consequences of austerity policies for European labour markets during recent years.

Keywords

Fiscal policy Public debt Private debt Fiscal austerity Fiscal shocks Euro-area countries Spillover of fiscal shocks Structural VAR models German fiscal shocks

Authors and affiliations

  • Antonella Cavallo
    • 1
  • Pietro Dallari
    • 2
  • Antonio Ribba
    • 3
  1. 1.Department of EconomicsUniversity of Modena and Reggio EmiliaModenaItaly
  2. 2.Fiscal Affairs DepartmentInternational Monetary FundWashington, DCUSA
  3. 3.Department of EconomicsUniversity of Modena and Reggio EmiliaModenaItaly

Bibliographic information

  • DOI https://doi.org/10.1007/978-3-319-70269-8
  • Copyright Information Springer International Publishing AG 2018
  • Publisher Name Springer, Cham
  • eBook Packages Economics and Finance
  • Print ISBN 978-3-319-70268-1
  • Online ISBN 978-3-319-70269-8
  • Buy this book on publisher's site