RESEARCH
RESEARCH
Fiscal Consolidation In Heavily Indebted Economies. Journal of Economic Dynamics and Control. Volume 173, 2025.
In this paper, I build a dynamic general equilibrium model calibrated to the U.S. economy to study the macroeconomic effects of alternative fiscal consolidation strategies in a context where the private sector is heavily indebted. Fiscal consolidation is defined as a permanent reduction of the public debt-to-GDP ratio through government spending cuts or tax hikes. I show that in the long run, fiscal consolidation entails output benefits that are dampened when private debt is high. This effect occurs independently of the fiscal instrument used to stabilize the debt. In the short run, I find that a fiscal policy that raises labour or capital tax rates induces deleveraging in the private sector, which amplifies temporary output losses due to fiscal consolidation policies. By contrast, a fiscal consolidation achieved by government spending cuts or consumption tax hikes facilitates the repayment of private debt, thereby mitigating the negative output effect associated with a public debt reduction. Finally, regarding social welfare, I find that a fiscal consolidation brings higher welfare gains when government spending or consumption tax rates adjust in an environment of high private debt. However, it increases the social welfare loss when capital or labour tax rates adjust to meet the public debt target.
Adaptive Self-assessment Through the Virtual Campus: A Tool to Improve the Teaching–learning Process. In Teaching Innovations in Economics: Towards a Sustainable World (PP. 99-124 ), SPRINGER, 2024, ISBN: 978-3-031-72548-7. Joint with Nina Pallarés.
The Effect of AI and Formative Feedback on Student Learning in Microeconomics.
Joint with Nina Pallarés.
The Effects of Macroprudential Policy on Tax Evasion.
Joint with Francesco Turino and Moisés Meroño.
Fiscal consolidation, private debt and Tax evasion.
Joint with Moisés Meroño.
Private debt and Fiscal Multipliers (working paper)
On the Sustainability of the Spanish Public Debt (working paper)