French paper looks at impact of budget-neutral fiscal changes

banquedefrance
Banque de France

A working paper published by the Banque de France examines the effects of “budget-neutral” changes to the composition of government revenue raising and spending.

In Can fiscal budget-neutral reforms stimulate growth? Model-based results, Matthieu Bussière, Laurent Ferrara, Michel Juillard and Daniele Siena use a dynamic stochastic general equilibrium model featuring the US, the eurozone, and the rest of the world.

They model the effects of what they call the most growth-friendly budget

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