Found 47 article(s) for author 'Alberto Alesina'

The Evolution of Ideology, Fairness and Redistribution

The Evolution of Ideology, Fairness and Redistribution. Alberto Alesina, December 2012, Paper. “Ideas about what is ‘fair’ influence preferences for redistribution. We study the dynamic evolution of different economies in which redistributive policies, perception of fairness, inequality and growth are jointly determined. We show how including beliefs about fairness can keep two otherwise identical countries on different development paths for a very long time. We show how different initial conditions regarding how ‘fair’ is the same level of inequality can lead to…” Link

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Fiscal Policy after the Great Recession

Fiscal Policy after the Great Recession. Alberto Alesina, September 12, 2012, Paper. “The Great Recession has severely hit the economies of most of the countries. Given that, fiscal policies have gained back a central role in the debate as a tool to recover from this situation. This paper provides an overview about the main controversial issues related to the fiscal policy. In particular, we analyze the role and the different effects played by discretionary counter-cyclical policies – say, for instance, tax cuts or increased government spending…” Link

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The Kindest Cuts

The Kindest Cuts. Alberto Alesina, Fall 2012, Opinion. “Shrinking spending reduces deficits without harming the economy—unlike tax hikes. Should debt-ridden and economically struggling Western governments be doing everything possible to reduce their deficits? The debate over that question has become increasingly confusing—not only in Europe, where the matter is particularly urgent, but in the United States, too. Those in favor of immediate deficit reduction argue that it is a necessary precondition of economic growth…” Link

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A tale of two divergences

A tale of two divergences. Alberto Alesina. April 28, 2012. Paper. “The divergence in sovereign spreads across Eurozone members has been the object of much attention. This column looks at divergence across US states and finds that unexpected deficits are correlated with higher state bond yields across all states. This effect is larger for states with left-leaning political systems, suggesting that bond-market participants view political variables as relevant in assessing the risk characteristics of sub-sovereign bonds. One of the casualties of the financial crisis has been the idea that the sovereign debt of industrial economies is safe…”  Link

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The Electoral Consequences of Large Fiscal Adjustments

The Electoral Consequences of Large Fiscal Adjustments. Alberto Alesina, December 2011, Paper. “The conventional wisdom regarding the political consequences of large reductions of budget deficits is that they are very costly for the governments which implement them: they are punished by voters at the following elections. In the present paper, instead, we find no evidence that governments which quickly reduce budget deficits are systematically voted out of office in a sample of 19 OECD countries from 1975 to 2008. We also take into consideration issues of reverse causality…” Link

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Artificial States

Artificial States. Alberto Alesina, March 15, 2011, Paper.We define artificial states as those in which political borders do not coincide with a division of nationalities desired by the people on the ground. We propose and compute for most countries in the world two measures of the degree to which borders may be artificial. One measures how borders split ethnic groups into two separate adjacent countries. The other measures the straightness of land borders, under the assumption the straight land borders are more likely to be artificial…” May require purchase or user account. Link

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Gender-Based Taxation and the Division of Family Chores

Gender-Based Taxation and the Division of Family Chores. Alberto Alesina, September 2010, Paper. “Gender-Based Taxation (GBT) satisfies Ramsey’s rule of optimality because it taxes at a lower rate the more elastic labor supply of women. This holds when different elasticities between men and women are taken as exogenous. We study GBT in a model in which labor supply elasticities emerge endogenously from the bargained allocation of goods and time in the family…” Link

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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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