Suchergebnisse

This dissertation, comprising three academic papers, deals with the trade-off between fiscal sustainability and macroeconomic stabilization. The first paper examines the specification of fiscal reaction functions: We argue that the fiscal response to public debt is varying over time, finding formal empirical evidence in favor. We then link this non-linear fiscal response to changes in the interest rate-growth differential and the level of public debt. The second paper takes time-varying parameter fiscal reaction functions to an out-of-sample forecast performance evaluation, embedding it in ...