Quotation Weichenrieder, Alfons and Zimmer, Jochen. 2013. Euro membership and fiscal reaction functions. International Tax and Public Finance 21 (4): S. 598-613.




The paper uses fiscal reaction functions for a panel of euro-area countries. We investigate whether euro membership has reduced the responsiveness to shocks in the level of inherited debt. Compared with the performance in the period between signing of the Maastricht Treaty and introduction of the euro, membership has significantly reduced the average responsiveness. Conversely, when compared to the period before the Maastricht Treaty, euro membership is associated with a larger responsiveness. The results are sensitive to changes in the specification, such as an exclusion of Greece from the panel.


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Publication's profile

Status of publication Published
Affiliation WU
Type of publication Journal article
Journal International Tax and Public Finance
Citation Index SSCI
WU Journalrating 2009 A
WU-Journal-Rating new FIN-A, INF-A, STRAT-B, VW-D, WH-B
Language English
Title Euro membership and fiscal reaction functions
Volume 21
Number 4
Year 2013
Page from 598
Page to 613
URL http://link.springer.com/article/10.1007/s10797-013-9299-3
DOI 10.1007/s10797-013-9299-3
JEL H62 E62


Weichenrieder, Alfons (Details)
Zimmer, Jochen (Deutsche Bundesbank, Germany)
Research Institute for International Taxation FI (Details)
Tax Policy and European Tax Law Group AB (Details)
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