Can Fiscal Spending be Contractionary in the Neoclassical Economy?

Economica ◽  
1993 ◽  
Vol 60 (239) ◽  
pp. 347 ◽  
Author(s):  
Chi-Chur Chao ◽  
Eden S. H. Yu
Keyword(s):  
Neoclassical Economy ◽  
Fiscal Spending

scholarly journals The Dynamic Impact of Agricultural Fiscal Expenditures and Gross Agricultural Output on Poverty Reduction: A VAR Model Analysis

2021 ◽  
Vol 13 (11) ◽  
pp. 5766
Author(s):  
Guanglu Zeng ◽  
Chenggang Zhang ◽  
Sanxi Li ◽  
Hailin Sun
Keyword(s):  
Rural Areas ◽  
Poverty Alleviation ◽  
Local Governments ◽  
Poverty Reduction ◽  
Time Frame ◽  
Sustainable Growth ◽  
Var Model ◽  
Poverty Eradication ◽  
Output Analysis ◽  
Fiscal Spending

China was the first developing country to achieve the poverty eradication target of the 2030 Agenda for Sustainable Development Goals (SDG) 10 years ahead of schedule. Its past approach has been, mainly, to allocate more fiscal spending to rural areas, while strengthening accountability for poverty alleviation. However, some literature suggests that poor rural areas still lack the endogenous dynamics for sustainable growth. Using a vector autoregression (VAR) model, based on data from 1990 to 2019, we find that fiscal spending plays a much more significant role in reducing the poverty ratio than agricultural development. When poverty alleviation is treated as an administrative task, each poor village must complete the spending of top-down poverty alleviation funds within a time frame that is usually shorter than that required for successful specialty agriculture. As a result, the greater the pressure of poverty eradication and the more funds allocated, the more poverty alleviation projects become an anchor for accountability, and the more local governments’ consideration of industry cycles and input–output analysis give way to formalism, homogeneity, and even complicity. We suggest using the leverage of fiscal funds to direct more resources to productive uses, thus guiding future rural revitalization in a more sustainable direction.

Ireland faces economic uncertainty with OECD reforms

2021 ◽  
Keyword(s):  
Tax Revenue ◽  
Economic Uncertainty ◽  
Corporate Tax ◽  
Content Type ◽  
Tax Rate ◽  
Sinn Fein ◽  
Fiscal Spending

Significance This framework laid out two pillars of reform. Pillar One would see large companies liable for tax in the end-market jurisdiction where their goods or services are used or consumed. Pillar Two would set a minimum tax rate of 15%. Impacts Ireland will probably support the reforms by October, and in return it may get some concessions over implementation or sectoral coverage. Reduced corporate tax revenue may result in tighter fiscal spending, which would play into the hands of the opposition Sinn Fein. The corporate tax proposals come at a particularly bad time for the Irish economy, which is already facing the consequences of Brexit.

scholarly journals Fiscal Spending and Economic Growth: Some Stylized Facts

2012 ◽  
Vol 40 (9) ◽  
pp. 1750-1761 ◽  
Author(s):  
Céline Carrère ◽  
Jaime de Melo
Keyword(s):  
Economic Growth ◽  
Stylized Facts ◽  
Fiscal Spending

Can fiscal spending stimulate private consumption?

2004 ◽  
Vol 82 (2) ◽  
pp. 173-179 ◽  
Author(s):  
Ludger Linnemann ◽  
Andreas Schabert
Keyword(s):  
Private Consumption ◽  
Fiscal Spending

Economic uptick may not spell recovery in Brazil

2020 ◽  
Keyword(s):  
Risk Aversion ◽  
Sovereign Debt ◽  
Market Risk ◽  
Debt Maturity ◽  
Bright Spot ◽  
Content Type ◽  
Interest Payments ◽  
Fiscal Spending

Significance Indicators bottomed out after April. Most economists now expect GDP to contract by 5.5-6.0% this year, a severe blow to an economy that had yet fully to recover the ground lost in the brutal 2015-16 recession, but less than the highly pessimistic forecasts prevailing during the initial months of the pandemic. Impacts Lower rates have reduced fiscal spending on interest payments, a rare bright spot on the fiscal side. Inflation remains low but fiscal deterioration may prevent further rate cuts. The recent fall in sovereign debt maturity could leave Brazil more exposed to sudden changes in market risk aversion.

scholarly journals Jump-Starting the Euro-Area Recovery: Would a Rise in Core Fiscal Spending Help the Periphery?

2017 ◽  
Vol 31 (1) ◽  
pp. 103-182 ◽  
Author(s):  
Olivier Blanchard ◽  
Christopher J. Erceg ◽  
Jesper Lindé
Keyword(s):  
Euro Area ◽  
Fiscal Spending

Fiscal Spending Jobs Multipliers: Evidence from the 2009 American Recovery and Reinvestment Act

2012 ◽  
Vol 4 (3) ◽  
pp. 251-282 ◽  
Author(s):  
Daniel J Wilson
Keyword(s):  
State Level ◽  
The State ◽  
First Year ◽  
Fiscal Stimulus ◽  
Federal Highway ◽  
Fiscal Spending

This paper estimates the “jobs multiplier” of fiscal stimulus spending using the state-level allocations of federal stimulus funds from the American Recovery and Reinvestment Act (ARRA) of 2009. Because the level and timing of stimulus funds that a state receives was potentially endogenous, I exploit the fact that most of these funds were allocated according to exogenous formulary allocation factors such as the number of federal highway miles in a state or its youth share of population. Cross-state IV results indicate that ARRA spending in its first year yielded about eight jobs per million dollars spent, or $125,000 per job. (JEL E24, E62, H72, H75, R23)

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