ON THE MIX OF GOVERNMENT EXPENDITURE AND TAX REVENUES

George Economides; Hyun Park; Apostolis Philippopoulos; Stelios Sakkas

doi:10.1017/S1365100520000036

ON THE MIX OF GOVERNMENT EXPENDITURE AND TAX REVENUES

George Economides, Hyun Park, Apostolis Philippopoulos, Stelios Sakkas

Research output: Contribution to journal › Article › peer-review

5 Citations (Scopus)

Abstract

We study the implications of changes in the mix of taxes, public spending, and public finance in the Eurozone. In so doing, we build a general equilibrium OLG model that naturally incorporates all the main categories of public spending and taxes. We focus on the medium- and long-run implications of permanent reforms in the actual policy mix. When we depart from 2008, the best way out of the recession would be an increase in public spending on education and health and in turn cuts in distorting taxes including social security contributions. When we depart from the year 2017, which features a higher inherited public debt, public debt consolidation becomes the superior reform to the extent that the focus is on the medium and long run.

Original language	English
Pages (from-to)	1-48
Number of pages	48
Journal	Macroeconomic Dynamics
Volume	26
Issue number	1
DOIs	https://doi.org/10.1017/S1365100520000036
Publication status	Published - 9 Jan 2022

Bibliographical note

Publisher Copyright:
© 2020 Cambridge University Press.

Keywords

Fiscal Reforms
Public Finance

Access to Document

10.1017/S1365100520000036

Cite this

@article{8c4d5850e61946a5afa5c24f9bf031c2,

title = "ON THE MIX OF GOVERNMENT EXPENDITURE AND TAX REVENUES",

abstract = "We study the implications of changes in the mix of taxes, public spending, and public finance in the Eurozone. In so doing, we build a general equilibrium OLG model that naturally incorporates all the main categories of public spending and taxes. We focus on the medium- and long-run implications of permanent reforms in the actual policy mix. When we depart from 2008, the best way out of the recession would be an increase in public spending on education and health and in turn cuts in distorting taxes including social security contributions. When we depart from the year 2017, which features a higher inherited public debt, public debt consolidation becomes the superior reform to the extent that the focus is on the medium and long run.",

keywords = "Fiscal Reforms, Public Finance",

author = "George Economides and Hyun Park and Apostolis Philippopoulos and Stelios Sakkas",

note = "Publisher Copyright: {\textcopyright} 2020 Cambridge University Press.",

year = "2022",

month = jan,

day = "9",

doi = "10.1017/S1365100520000036",

language = "English",

volume = "26",

pages = "1--48",

journal = "Macroeconomic Dynamics",

issn = "1365-1005",

publisher = "Cambridge University Press",

number = "1",

}

TY - JOUR

T1 - ON THE MIX OF GOVERNMENT EXPENDITURE AND TAX REVENUES

AU - Economides, George

AU - Park, Hyun

AU - Philippopoulos, Apostolis

AU - Sakkas, Stelios

PY - 2022/1/9

Y1 - 2022/1/9

N2 - We study the implications of changes in the mix of taxes, public spending, and public finance in the Eurozone. In so doing, we build a general equilibrium OLG model that naturally incorporates all the main categories of public spending and taxes. We focus on the medium- and long-run implications of permanent reforms in the actual policy mix. When we depart from 2008, the best way out of the recession would be an increase in public spending on education and health and in turn cuts in distorting taxes including social security contributions. When we depart from the year 2017, which features a higher inherited public debt, public debt consolidation becomes the superior reform to the extent that the focus is on the medium and long run.

AB - We study the implications of changes in the mix of taxes, public spending, and public finance in the Eurozone. In so doing, we build a general equilibrium OLG model that naturally incorporates all the main categories of public spending and taxes. We focus on the medium- and long-run implications of permanent reforms in the actual policy mix. When we depart from 2008, the best way out of the recession would be an increase in public spending on education and health and in turn cuts in distorting taxes including social security contributions. When we depart from the year 2017, which features a higher inherited public debt, public debt consolidation becomes the superior reform to the extent that the focus is on the medium and long run.

KW - Fiscal Reforms

KW - Public Finance

UR - http://www.scopus.com/inward/record.url?scp=85082106252&partnerID=8YFLogxK

U2 - 10.1017/S1365100520000036

DO - 10.1017/S1365100520000036

M3 - Article

AN - SCOPUS:85082106252

SN - 1365-1005

VL - 26

SP - 1

EP - 48

JO - Macroeconomic Dynamics

JF - Macroeconomic Dynamics

IS - 1

ER -

ON THE MIX OF GOVERNMENT EXPENDITURE AND TAX REVENUES

Abstract

Bibliographical note

Keywords

Access to Document

Other files and links

Fingerprint

Cite this