El impacto de la consolidación fiscal sobre el crecimiento económico. Una ilustración para la economía española a partir de un modelo de equilibrio general

Series: Occasional Papers. 1205.

Author: Pablo Hernández de Cos and Carlos Thomas.

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El impacto de la consolidación fiscal sobre el crecimiento económico. Una ilustración para la economía española a partir de un modelo de equilibrio general (521 KB)

Abstract

This study illustrates the effects of different fiscal consolidation measures on economic activity through simulations performed with a general equilibrium model calibrated to the Spanish economy. Overall, our results show that fiscal consolidation has short-run costs but sizable long-run benefits in terms of growth. Regarding the short-run costs, their magnitude depends crucially on the presence of confidence effects due to the consolidation process, which tend to reduce the value of fiscal multipliers.