The goal of the project is to determine the short and long run effects of fiscal policy on the efficient allocation of resources and welfare of consumers in a multisectorial general equilibrium model of the Spanish economy. From a conceptual viewpoint, the most novel feature is the attention paid to model the effects of fiscal policies on the supply of private goods and services and growth, a subject economists have paid a considerable attention in the last years. From a pragmatic point of view, the fiscal policy of all countries in the European Union, Spain among them, has required in the past and will require in the future to implement severe fiscal adjustments, both on revenues and expenditures, to satisfy the deficit criterium set in the Maastricht Treaty. It is of the most importance to quantify the short and medium run consequences of alternative fiscal policies.
|Effective start/end date||21/12/97 → 21/12/00|