Using historical data, we test the validity of Wagner's law of increasing state activity at different stages of economic development for five industrialized European countries: the United Kingdom, Denmark, Sweden, Finland and Italy. In order to investigate the coherence between Wagner's law and...

We point out that fiscal multipliers derived from SVAR-models include the predicted future path of policy instruments. After the initial shock, net taxes and government expenditures react to each other and are autocorrelated. In a counterfactual simulation, we report fiscal multipliers that...

The Structural Vector Auto-regression (SVAR) approach to estimating fiscal multipliers, following the seminal paper by Blanchard and Perotti (2002), has been widely applied in the literature. In our paper we discuss the interpretation of these estimates and suggest that they are more useful for...

Using historical data, we test the validity of Wagner's law of increasing state activity at different stages of economic development for five industrialized European countries: the United Kingdom, Denmark, Sweden, Finland and Italy. In order to investigate the coherence between Wagner's law and...

Using historical data from the mid-19th century, we test the validity of Wagner's law of increasing state activity at different stages of economic development for five industrialized European countries: the United Kingdom, Denmark, Sweden, Finland, and Italy. In order to investigate the relation...

In this article, we point out requirements for potential output estimates used for cyclical adjustment in the German debt brake. Further, we propose supplementing the cyclical component in the debt break with an error term - regardless of the specific potential output estimation approach. The...

Die zuletzt hohe Inflation hat die staatlichen Budgets vorrübergehend entlastet. GängigeSchätzverfahren zur Konjunkturbereinigung dürften die grundlegende Haushaltslagedadurch temporär zu günstig zeichnen. Das gilt auch für die Konjunkturbereinigung in derdeutschen Schuldenbremse des...