Economics, Econometrics and Finance
8 years ago

Danish Fiscal Policy Shaping Economic Development Through Tax and Spending Changes

Contributions to economic analysis
Fiscal Effects and Multipliers in the Danish Economy
Lars Otto

Paper Summary

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The article discusses how changes in government taxes and spending can impact the economy. These changes are called fiscal effects. The study focuses on the active part of fiscal policy, which includes direct changes in taxes, pensions, and public spending. The researchers found that while it's hard to predict the exact impact of fiscal policies, they can influence economic development in the short term.