Austerity and Private Debt
Austerity and Private Debt
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紧缩和私人债务
DOI：
10.2139/ssrn.2865631
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发表时间：
2016
期刊：
影响因子：
--
通讯作者：
Mathias Klein
中科院分区：
文献类型：
--
作者：
Mathias Klein
This study provides empirical evidence that the costs of austerity crucially depend on the level of private indebtedness. In particular, fiscal consolidations lead to severe contractions when implemented in high private debt states. Contrary, fiscal consolidations have no significant effect on economic activity when private debt is low. These results are robust to alternative definitions of private debt overhang, the composition of fiscal consolidations and controlling for the state of the business cycle and government debt overhang. I show that deterioration in household balance sheets is important to understand private debt-dependent effects of austerity.
