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Replication data for: Effects of Austerity: Expenditure- and Tax-Based Approaches

Resource Type
  • Alesina, Alberto
  • Favero, Carlo
  • Giavazzi, Francesco
Publication Date
  • Abstract

    We review the debate surrounding the macroeconomic effects of deficit reduction policies (austerity). The discussion about "austerity" in general has distracted commentators and policymakers from a very important result, namely the enormous difference, on average, between expenditure- and tax-based austerity plans. Spending-based austerity plans are remarkably less costly than tax-based plans. The former have on average a close to zero effect on output and lead to a reduction of the debt/GDP ratio. Tax-based plans have the opposite effect and cause large and long-lasting recessions. These results also apply to the recent episodes of European austerity, which in this respect were not especially different from previous cases.
  • Is supplement to
    DOI: 10.1257/jep.33.2.141 (Text)
  • Alesina, Alberto, Carlo Favero, and Francesco Giavazzi. “Effects of Austerity: Expenditure- and Tax-Based Approaches.” Journal of Economic Perspectives 33, no. 2 (May 2019): 141–62.
    • ID: 10.1257/jep.33.2.141 (DOI)

Update Metadata: 2020-05-18 | Issue Number: 2 | Registration Date: 2019-10-13

Alesina, Alberto; Favero, Carlo; Giavazzi, Francesco (2019): Replication data for: Effects of Austerity: Expenditure- and Tax-Based Approaches. Version: 1. ICPSR - Interuniversity Consortium for Political and Social Research. Dataset.