Fiscal deficits, economic growth and government debt in the USA

Taylor, Lance; Proaño, Christian R.; Carvalho, Laura Barbosa de

doi:10.1093/cje/ber041

Cited by 74 publications

(56 citation statements)

References 5 publications

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“…1 A second strand of research such as Mittnik and Semmler (2012b), Auerbach and Gorodnichenko (2012), Taylor et al (2012) and Fazzari et al (2013) investigates how the growth effect of the fiscal stance depends on the business-cycle. The core result is that fiscal multipliers are more pronounced during recessions then during booms.…”

Section: Introductionmentioning

confidence: 99%

Financial stress, sovereign debt and economic activity in industrialized countries: Evidence from dynamic threshold regressions

Proaño¹,

Schoder²,

Semmler³

2014

Journal of International Money and Finance

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Section: Introductionmentioning

confidence: 99%

Financial stress, sovereign debt and economic activity in industrialized countries: Evidence from dynamic threshold regressions

Proaño¹,

Schoder²,

Semmler³

2014

Journal of International Money and Finance

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“…There would be cyclical convergence to a new steady-state. These effects are reversed if austerity is expansionary and convergence would be non-cyclical (Taylor et al, 2012). Obviously, as indicated by Pattillo et al (2002), public debt may have non-linear effects on growth, either through capital accumulation or productivity growth.…”

Section: Selection Of Transition Variablementioning

confidence: 99%

Non-linear Growth-Determinants Nexus: The Role of Sovereign Debt

Wu¹,

Liu²,

Huang³

2017

HPE-RPE

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We expand the new growth model as a panel smooth transition regression specification to measure the effects of determinants on growth and the role of debt ratio in the growth-determinants nexus. In the model, we consider new determinants (FDI, export and tourism) and use a two-period lagged debt-GDP ratio as the transition variable. The effects of determinants on growth vary across countries and with time, depending on the value of the transition variable. The threshold of the debt-GDP ratio (73.019%) is a referenced index to set the ceiling of debt-GDP ratio for the fiscal stability. For countries with high debt ratios, the policies to accumulate human capital and promote tourism are more effective in boosting growth than to stimulate domestic physical investment and export. For countries with low debt ratios, the conclusion is opposite. Thus, lowering debt ratio is not always favorable for the contributions of individual determinants to growth.

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“…Nižšia volatilita produktu v krátkom období teoreticky zvyšuje rast potenciálu. Taylor et al (2012) dokonca tvrdia, že takýto kontracyklický efekt preváži v dlhom období aj po prihliadnutí k vplyvu defi citu na úrokové miery.…”

Section: Fiškálny Defi Cit V Kontexte Ekonomického Rastuunclassified

“…Tvorí v priemerne 43,3 % celkových výdav-kov vzorky. Kontracyklický efekt tohto defi citu môže vplývať prosrastovo (Taylor et al, 2012). Podskupiny spotreby (napr.…”

Section: Vplyv Tvorby Defi Citu Na Ekonomický Rastunclassified

The Influence of Fiscal Deficit Creation on Economic Growth

Murín¹

2016

Politicka ekonomie

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The discussion of infl uence of fi scal consolidation on economic growth is quite interesting and important topic. Consequently, the main aim of the article is to determine diff erences within the infl uence of fi scal defi cit on the economic growth, which is caused by changes in certain groups of government expenditures and revenues. We focus on two diff erent economic growth indicators. The fi rst is growth rate of real GDP and the second is growth rate of potential output. The panel regression method is used which data covers 13 old EU member states in 1996 to 2013. We employ the omitted fi scal variable approach. There is a hint that every defi cit to revenue substitution has no signifi cant growth eff ect. The results of expenditures imply, that government should reduce defi cit created by debt service. The measure has relatively stronger eff ect on supply side. Potential output growth can also be supported by the defi cit decrease of social expenditures. Lowering government consumption is detrimental to GDP, but it is not to potential output. There are some diff erences between results of two types of growth. Hence government should decide, if consolidation eff ect is considered against GDP or potential output at fi rst.Keywords: fi scal defi cit, economic growth, consolidation, government revenues, government expenditures JEL Classifi cation: O40, H62, H50, H20 ÚvodFinančná kríza vo viacerých smeroch zmenila vnímanie hospodárskej politiky. Blanchard et al. (2010) poukazujú na problémy spojené s monetárnou politikou, ktorá pri cielení infl ácie drží dlhodobo nízke úrokové miery. V prípade výraznej recesie stráca centrálna banka možnosť ovplyvniť úroveň infl ácie štandardnými monetárnymi nástrojmi. Potom je odkázaná na pôsobenie fi škálnej politiky. Tá podobne narazila na svoje limity. V čase poslednej recesie nemali niektoré vlády dostatočný priestor na adekvátne stimuly. Rad ekonómov viní z terajších problémov roztopašnosť fi škálnych autorít v dobrých časoch. Crafts (2013) tvrdí, že hospodárska autorita môže podporiť rast pomocou 3 politík. Konkrétne sa jedná o fi škálnu expanziu, monetárne uvoľnenie, alebo politiku strany ponuky. Súčasný stav núti krajiny znižovať verejný dlh. Preto je dôležité hľadať také opatrenia, ktoré by neznižovali rastové možnosti problémových ekonomík, čím by sa zmiernila dominancia ostatných politík v infl ačnom znižovaní reálneho dlhu.Cieľom tohto príspevku je určiť rozdiely v dopade fi škálneho defi citu na ekonomický rast, ktorý vzniká zmenami vybratých skupín vládnych výdavkov a príjmov. Na základe získaných výsledkov bude ambíciou článku, upozorniť na možné rast obmedzujúce účinky znižovania defi citu a obohatiť diskusiu dopadov konsolidácie na ekonomický rast. Na druhú stranu, bude prínosné určiť rozpočtové kategórie, ktorých zmeny znižujú úroveň defi citu k HDP, a súčasne môžu spôsobovať konečný rastový efekt z poklesu deficitu. Analýza nadväzuje na skoršiu prácu autora (Murín, 2014) a rozširuje ju vo viacerých aspektoch. Empirická verifi kácia vychádza z panelovej regr...

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Fiscal deficits, economic growth and government debt in the USA

Cited by 74 publications

References 5 publications

Financial stress, sovereign debt and economic activity in industrialized countries: Evidence from dynamic threshold regressions

Financial stress, sovereign debt and economic activity in industrialized countries: Evidence from dynamic threshold regressions

Non-linear Growth-Determinants Nexus: The Role of Sovereign Debt

The Influence of Fiscal Deficit Creation on Economic Growth

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