TY  - JOUR
AU  - Alesina, Alberto F
AU  - Ardagna, Silvia
TI  - Large Changes in Fiscal Policy: Taxes Versus Spending
JF  - National Bureau of Economic Research Working Paper Series
VL  - No. 15438
PY  - 2009
Y2  - October 2009
DO  - 10.3386/w15438
UR  - http://www.nber.org/papers/w15438
L1  - http://www.nber.org/papers/w15438.pdf
N1  - Author contact info:
Alberto F. Alesina
E-Mail: *NA user is deceased

Silvia Ardagna
Global Economics
Global Investment Research
130 Peterborough Court
133 Fleet Street
London EC4A 2BB
United Kingdom
Tel: 44 (0) 20 7051 0584
E-Mail: no email available
M1  - published as Alberto Alesina, Silvia Ardagna. "Large Changes in Fiscal Policy: Taxes versus Spending," in Jeffrey R. Brown, editor, "Tax Policy and the Economy, Volume 24" The University of Chicago Press (2010)

M3  - presented at "Tax Policy & the Economy", September 24, 2009
AB  - We examine the evidence on episodes of large stances in fiscal policy, both in cases of fiscal stimuli and in that of fiscal adjustments in OECD countries from 1970 to 2007. Fiscal stimuli based upon tax cuts are more likely to increase growth than those based upon spending increases. As for fiscal adjustments, those based upon spending cuts and no tax increases are more likely to reduce deficits and debt over GDP ratios than those based upon tax increases. In addition, adjustments on the spending side rather than on the tax side are less likely to create recessions. We confirm these results with simple regression analysis.
ER  -