Essays on fiscal policy

• Main Author: Χρυσανθακόπουλος, Χρήστος
• Other Authors: Chrysanthakopoulos, Christos
• Language: English
• Published: 2024
• Subjects: Fiscal policy; Fiscal rule’s characteristics; Procyclicality; Tax policy; Cyclicality; Time-varying coefficients; Δημοσιονομική πολιτική

The title of my thesis is “Essays on Fiscal Policy”. The thesis is composed of three chapters that examine current policy developments in the field of fiscal policy. It examines the medium-term effects of fiscal policy rules on fiscal outcomes, and the effects of fiscal institutions on fiscal adjustment. Moreover, it examines the cyclicality of fiscal policy and the role played by various macroeconomic, institutional, and political determinants on its conduct. More specifically, the first chapter (The medium-term effects of fiscal policy rules) builds on the idea that in the past, fiscal rules failed on their purpose. To this end, it is examined their medium-term effects, concluding that although fiscal rules lead to a fiscal easing in the medium-term, however, they lead to a more prudent fiscal policy stance when countries facing fiscal problems. The second chapter (The effects of fiscal institutions on fiscal adjustment) aims at analyzing various specific characteristics of fiscal rules and fiscal councils, assessing their impact on the likelihood of a fiscal adjustment and subsequently gauging the success of such an adjustment. The last chapter (Fiscal policy cyclicality) examines the role of fiscal rules and fiscal councils on the conduct of fiscal policy. Furthermore, for the first time, investigated the cyclicality of tax policy and its susceptibility to various factors, such as fiscal rules and fiscal councils and other macroeconomic and political factors.