Research Paper 2: Effects of expenditure and revenue-side consolidations

In the wake of the financial and economic crisis, public debt levels have risen significantly, meaning that the consolidation of public budgets is having a major impact on economic policy. Against this backdrop, this research paper summarizes the economic literature on the macroeconomic impact of expenditure- and revenue-oriented consolidation measures.

The results suggest that, in anticipation of an economic recovery in the coming years, the focus of consolidation should be on the expenditure side.