Fiscal policy reforms in general equilibrium: The case of Greece

Papageorgiou, Dimitris

doi:10.1016/j.jmacro.2011.12.008

Cited by 31 publications

(41 citation statements)

References 44 publications

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“…Similar values can also be found inPapageorgiou (2012). Furthermore, the Groningen Growth and Development Center database, for the period 1990-2010, provides an average for the labor share parameter equal to 54.73%.…”

supporting

confidence: 71%

1979–2001: A Greek great depression through the lens of neoclassical growth theory

Gogos¹,

Mylonidis²,

Papageorgiou³

et al. 2014

Economic Modelling

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supporting

confidence: 71%

1979–2001: A Greek great depression through the lens of neoclassical growth theory

Gogos¹,

Mylonidis²,

Papageorgiou³

et al. 2014

Economic Modelling

Self Cite

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“…First, it is related to the literature on debt consolidation (see e.g. Coenen et al, 2008, Forni et al, 2010, European Commission, 2010, Papageorgiou, 2012, and Bi et al, 2012. This literature focuses on the best possible mix of spending cuts and tax rises.…”

Section: Introductionmentioning

confidence: 99%

Smaller Public Sectors in the Euro Area: Aggregate and Distributional Implications

Economides

Papageorgiou²,

Philippopoulos

et al. 2012

CESifo Economic Studies

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Standard-Nutzungsbedingungen:Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden.Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich machen, vertreiben oder anderweitig nutzen.Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, gelten abweichend von diesen Nutzungsbedingungen die in der dort genannten Lizenz gewährten Nutzungsrechte. In this paper, we study the aggregate and distributional implications of a smaller public sector in the euro area. By a smaller public sector, we mean a reduction in public debt and/or cuts in public spending, when such changes in fiscal policy are accommodated by adjustment in various taxes. Aggregate implications have to do with per capita output and welfare, while distribution refers to differences in income and welfare between private and public sector employees. We solve the model numerically using fiscal data from the euro area and then do a number of policy experiments. The general message is that the issue is not just a smaller public sector, but also the spending-tax mix chosen. Terms of use: Documents in EconStor mayJEL-Code: H100, H300, H200.

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“…42 Papageorgiou (2012) uses data up to 2008 and highlights that increasing consumption and lowering labor income taxes stimulates the economy. Our emphasis on capital income taxes is justified by their significant increase during the bust period.…”

Section: Policy Experimentsmentioning

confidence: 99%

The Macroeconomics of the Greek Depression

2019

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The Greek economy experienced a boom until 2007, followed by a prolonged depression resulting in a 25 percent shortfall of GDP by 2016. Informed by a detailed analysis of macroeconomic patterns in Greece, we estimate a rich dynamic general equilibrium model to assess quantitatively the sources of the boom and bust. Lower external demand for traded goods and contractionary fiscal policies account for the largest fraction of the Greek depression. A decline in total factor productivity, due primarily to lower factor utilization, substantially amplifies the depression. Given the significant adjustment of prices and wages observed throughout the cycle, a nominal devaluation would only have short-lived stabilizing effects. By contrast, shifting the burden of adjustment away from taxes toward spending or away from capital taxes toward other taxes would generate longer-term production and consumption gains. Eliminating the rise in transfers to households during the boom would significantly reduce the burden of tax adjustment in the bust and the magnitude of the depression.

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Fiscal policy reforms in general equilibrium: The case of Greece

Cited by 31 publications

References 44 publications

1979–2001: A Greek great depression through the lens of neoclassical growth theory

1979–2001: A Greek great depression through the lens of neoclassical growth theory

Smaller Public Sectors in the Euro Area: Aggregate and Distributional Implications

The Macroeconomics of the Greek Depression

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