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Full-Text Articles in Macroeconomics
Long-Run Effects Of Austerity, Guilherme Klein Martins
Long-Run Effects Of Austerity, Guilherme Klein Martins
Economics Department Working Paper Series
This paper provides evidence that austerity shocks have long-run negative effects on GDP. Besides addressing the important gap in the growing fiscal research regarding the short time horizon of the estimations, this paper analyzes two other important assumptions made in the literature regarding the (i) symmetry of episodes of fiscal expansion and con- traction and (ii) uniformity of fiscal multipliers for different sizes of shocks. We use narrative fiscal shocks and propensity score reweighting in a local projections setup to account for the potential endogeneity of austerity policies and the non-linearity of its effects over time. The estimation is also …
Cyclical Downturn Or Structural Disease? The Decline Of The Italian Economy In The Last Twenty Years, Enrico Saltari, Giuseppe Ciccarone
Cyclical Downturn Or Structural Disease? The Decline Of The Italian Economy In The Last Twenty Years, Enrico Saltari, Giuseppe Ciccarone
Enrico Saltari
Italy is experiencing at present the most serious economic recession of the post-war period. Between 2008 and 2013 national income fell by 9 per cent, per capita incomes by 11 per cent, and industrial production by 25 per cent; and unemployment doubled. In this essay we argue that, while this dramatic situation has been made worse by the policies of ‘expansive austerity’, its origins can be traced back to changes that took place in the 1990s (notably globalization, competition for emerging new markets and the diffusion of new technologies – ICT) to which Italy failed to react speedily or effectively …
The Origins Of The Italian Sovereign Debt Crisis, David M. Henningsen
The Origins Of The Italian Sovereign Debt Crisis, David M. Henningsen
CMC Senior Theses
Over the past decade, the European Union has been characterized by an explosion of expenditure, insufficient revenue, high deficits and a lack of budget discipline. Financial markets in Europe are currently dealing with enormous government debts, poor government balance sheets and a weakening banking system. The purpose of this paper is to investigate the origins of the current Euro-crisis and specifically identify the extent to which it will affect the nation of Italy going forward. To understand Italy's stance amid the Euro-crisis, we proceed as follows: First, a historical background section will develop the fundamental issues that have developed in …