1,721,125 research outputs found
Political Fragmentation and Fiscal Outcomes
No full textIn this paper we develop the analysis of the effects on political fragmentation on fiscal policy in a number of ways. We analyze three kinds of fragmentation: size and control, institutional and over time fragmentation. In doing so we introduce a number of new variables that allow us to look at this issue in a broader way. At the same time we have tackled some methodological problems that affected previous analyses, using a panel of 19 OECD countries over 1975 - 1995. Overall we find relatively poor evidence in favor of size and over time fragmentation, and more evidence of institutional and control fragmentation
Assessing Ricardian Equivalence
No full textThis paper reviews the literature on Ricardian equivalence. This hypothesis may be interpreted as a generalization to the short and the long run of the theories that put no weight on the real effects of public policies on aggregate demand. We argue that Ricardian equivalence relies on both the permanent income hypothesis and the fulfillment of the intertemporal government budget constraint. The theoretical literature emphasizes several reasons for departures from this hypothesis. However, the empirical literature is inconclusive. When Ricardian equivalence is tested in a life-cycle framework the hypothesis is usually rejected, while when the empirical analysis is based on optimizing models, it is usually accepted
The quest for a fiscal rule : Italy, 1861–1998
No full textFirst online: 04 December 2007; Published also in: Institute of Public Policy and Public Choice - POLIS, 2007 (2007-09)The Italian fiscal history is characterised by a number of fiscal consolidations. In this study, we characterise fiscal policy in terms of non-linear deterministic processes. We find that government spending and taxes can be described as being non-linear trend stationary processes instead of unit roots. A long run equilibrium relationship—a non-linear co-trend—does exist between the two series, fulfilling the intertemporal government budget constraint. We interpret this result as evidence of a long run fiscal rule that different policy makers have adopted, putting public finance in balance
Bringing macroeconomics into the lab
No full textThis paper reviews experiments in macroeconomics, pointing out the theoretical justifications, the strengths and weaknesses of this approach. We identify two broad classes of experiments: general equilibrium and partial equilibrium experiments, and emphasize the idea of theory testing that is behind these. A large number of macroeconomic issues have been analyzed in the laboratory: monetary economics, fiscal policy, international trade and finance, growth, lifecycle consumption, labor markets, search models and macroeconomic imperfections. In a large number of cases results give support to the theories tested. We also highlight that experimental macroeconomics has increased the number of tools available to experimentalists
Italian Institutional Reforms: A Public Choice Perspective
No full textDeals with numerous areas of change including the switch from centralized to federal government Using a public choice perspective, this book explains the evolution and political and economic impact of recent changes to the Italian institutional framework. Because these changes are so numerous and broad, their implementation serves as a case study for other Western governments. Particular attention is paid to the introduction of the EURO, the reform of voting from proportional to majoritarian rule, the impact of corporatism, constraints imposed by the Maastricht Treaty, and the switch from a highly centralized government to a federal organization
Legislature Size and Government Spending in Italian Regions: Forecasting the Effects of a Reform
No full textWe analyze the effect of different legislature size on per capita regional expenditure in Italy. According to the theory, legislature size has an indefinite effect on government spending because logrolling and transaction costs may have canceling effects. We find a large and significantly positive effect of the number of legislators. We use these findings to forecast the effects of the increase in the number of legislators that is taking place in some regions: a 10% increase in legislature size commands on average a 12% increase in per capita regional expenditure
Sulla political economy della spesa pubblica nell'Italia liberale
No full textQuesto lavoro analizza la domanda di spesa pubblica in Italia nel periodo 1861-1913 in una prospettiva di political economy, concentrandosi sul fenomeno dell’illusione fiscale. L’analisi suggerisce che la relazione tra crescita della spesa pubblica e disavanzi di bilancio sia stata fondamentalmente di lungo periodo. Si rivela di un certo interesse la relazione negativa di breve periodo tra spesa pubblica e prezzi dei beni privati, indicando una complementarità tra beni privati e pubblici; nel lungo periodo, invece, emerge una relazione di sostituzione tra questi beni. L’impatto della disuguaglianza del reddito e del numero dei votanti sulla spesa pubblica è molto variabile nel tempo
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