Found 40 article(s) for author 'Alberto Alesina'

Fiscal adjustments: lessons from recent history

Fiscal adjustments: lessons from recent history. Alberto Alesina, April 2010, Paper. “In the aftermath of the Great Recession, many OECD countries now need to reduce large public sector deficits and debts. This is not the first time that the “world” faces this problem. It happened in an even more dramatic fashion in the past century after the first and second world wars. In the first case, several episodes of large inflation (e.g. France) or hyperinflation (e.g. Austria Germany Hungary) wiped out the debts partly or completely, and in other cases…” Link

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The Politics of Monetary Policy

The Politics of Monetary Policy. Alberto Alesina, April 2010, Paper.“In this paper we critically review the literature on the political economy of monetary policy, with an eye on the questions raised by the recent financial crisis. We begin with a discussion of rules versus discretion. We then examine the issue of Central Banks independence both in normal times, in times of crisis. Then we review the literature of electoral manipulation of policies. Finally we address international institutional issues concerning the feasibility, optimality and political sustainability of currency unions…” Link

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Large changes in fiscal policy: taxes versus spending

Large changes in fiscal policy: taxes versus spending. Alberto Alesina, October 2009, Paper. “We examine the evidence on episodes of large stances in fiscal policy, both in cases of fiscal stimuli and in that of fiscal adjustments in OECD countries from 1970 to 2007. Fiscal stimuli based upon tax cuts are more likely to increase growth than those based upon spending increases. As for fiscal adjustments those based upon spending cuts and no tax increases are more likely to reduce deficits and debt over GDP ratios than those based upon tax increases…” Link

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TECHNOLOGY AND LABOR REGULATIONS. Alberto Alesina, April 2009, Paper. “Many low skilled jobs have been substituted away for machines in Europe, or eliminated, much more so than in the US, while technological progress at the “top”, i.e. at the high-tech sector, is faster in the US than in Europe. This paper suggests that the main difference between Europe and the US in this respect is their different labor market policies. European countries reduce wage flexibility and inequality through a host of labor market regulations, like binding minimum wage laws, permanent unemployment subsidies, firing costs, etc..” Link

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Preferences for Redistribution

Preferences for Redistribution. Alberto Alesina, January 2009, Paper. “This paper discusses what determines the preferences of individuals for redistribution. We review the theoretical literature and provide a framework to incorporate various effects previously studied separately in the literature. We then examine empirical evidence for the US, using the General Social Survey, and for a large set of countries, using the World Values Survey. The paper reviews previously found results and provides several new ones…” Link

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The Euro and Structural Reforms

The Euro and Structural Reforms. Alberto Alesina, November 2008, Paper. “This paper investigates whether or not the adoption of the Euro has facilitated the introduction of structural reforms, defined as deregulation in the product markets and liberalization and deregulation in the labor markets. After reviewing the theoretical arguments that may link the adoption of the Euro and structural reforms, we investigate the empirical evidence. We find that the adoption of the Euro has been associated with an acceleration of the pace of structural reforms in the product market…” Link

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WHY IS FISCAL POLICY OFTEN PROCYCLICAL? Alberto Alesina, Filipe R. Campante, September 2008, Paper. “Fiscal policy is procyclical in many developing countries. We explain this policy failure with a political agency problem. Procyclicality is driven by voters who seek to “starve the Leviathan” to reduce political rents. Voters observe the state of the economy but not the rents appropriated by corrupt governments. When they observe a boom, voters optimally demand more public goods or lower taxes, and this induces a procyclical bias in fiscal policy. The empirical evidence is consistent with this explanation…” Link

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The choice of institutions

The choice of institutions. Alberto Alesina, August 2007, Paper. “The ”classical” economists, Adam Smith, David Ricardo and Karl Marx clearly thought that in socio political forces were important determinants of economic development and change. On the contrary the “neoclassical” school starting with Jevons and Walras developed their economic theories in an institution free environment. Institution free economic theory has been the dominant school of thought at least until the 1990s. There were however a few exceptions…” Link

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Democracy, Technology, and Growth

Democracy, Technology, and Growth. Philippe Aghion, Alberto Alesina, May 2007, Paper. “We explore the question of how political institutions and particularly democracy affect economic growth. Although empirical evidence of a positive effect of democracy on economic performance in the aggregate is weak, we provide evidence that democracy influences productivity growth in different sectors differently and that this differential effect may be one of the reasons of the ambiguity of the aggregate results. We provide evidence that political rights are conducive to growth in more advanced sectors of an economy, while they do not matter or…” Link

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The Power of the Family

The Power of the Family. Alberto Alesina and Paola Giuliano, April 2007, Paper. “The structure of family relationships influences economic behavior and attitudes. We define our measure of family ties using individual responses from the World Value Survey regarding the role of the family and the love and respect that children need to have for their parents for over 70 countries. We show that strong family ties imply more reliance on the family as an economic unit which provides goods and services and less on the market and on the government for social insurance…” Link

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