Less Government - More Wealth? On the Macroeconomics of a Smaller Public Sector in Europe
In this paper, we analyze the reactions of European economies to a fiscal policy strategy aiming at diminishing the public sector. Within the framework of the MSG3 model, a macroeconomic model of the world economy, we perform several simulation experiments to explore the effects of reducing government expenditures permanently in different phases of the business cycle. For this purpose, we combine the fiscal contraction with negative and positive, Euro Area-wide and global, supply and demand...[Show more]
|Collections||ANU Research Publications|
|Source:||International Advances in Economic Research|
|01_Haber_Less_Government_-_More_Wealth?_2006.pdf||773.36 kB||Adobe PDF|
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