The effect of asset price volatility on fiscal policy outcomes

This paper examines the effect of asset price volatility on fiscal policy stance. We find that asset price volatility affects the volatility of discretionary fiscal policy in a positive and significant manner, which according to Fatas and Mihov (2003) has negative repercussions on output volatility and economic growth. Higher residential property price volatility amplifies both the volatility of government spending and the volatility of the discretionary fiscal policy stance. Equity price volatility increases the volatility of the fiscal policy stance, primarily via the government revenue channel.Asset prices, fiscal policy, volatility

Fiscal adjustments and asset price movements

This paper examines the links between asset price movements and fiscal adjustments. Our findings suggest that a pick up in asset prices increases the probability of initiating a fiscal adjustment, but it does not necessarily lead to a sustainable correction of fiscal imbalances. However, higher real equity prices increase the probability of success.Asset prices; fiscal adjustments

Boosting confidence: is there a role for fiscal policy?

This paper investigates the widely held view that expansionary fiscal policy can boost consumer and business confidence, which will stimulate private spending and sustain economic activity. We find evidence in favor of this conjecture, i.e., cuts in direct taxes generate a positive effect on consumer and business confidence, while the same applies in cases of higher non-wage government consumption. However, higher government wage bills and government investment reduce confidence, possibly because they entail a permanent increase in the size of the public sector, which would have to be financed by higher future taxes.Fiscal Policy, Consumer Confidence, Business Confidence, Fiscal Stimulus of Confidence

The unemployment effects of fiscal policy: Recent evidence from Greece

This paper investigates the unemployment effects of fiscal policy in Greece based on the SVAR methodology. We find evidence that the unemployment and growth effects can be quite sizeable in case of cuts in government purchases and in particular government consumption and to a lesser extent government investment. Tax hikes reduce output and increase unemployment, in particular those leading to higher implicit direct and indirect tax rates. The impact effects of fiscal policy on output and unemployment are more sizeable when considering recent year developments. Both output and unemployment respond in a more persistent manner, compared to pre-crisis years

Fiscal policy and financial market movements

This paper estimates a fiscal policy reaction function in order to investigate the links between financial and real estate market movements and fiscal policy outcomes. An increase in asset prices affects in a positive and significant manner primary balances, with the response reflecting both an increase in government revenues and a fall in government spending. The most important impact on fiscal balances is due to changes in residential property prices. Changes in equity and commercial property prices are also important determinants of fiscal balances. Our findings suggest that the steepening of the slope of the yield curve contributes to expenditure based fiscal discipline.Asset prices; slope of the yield curve; fiscal policy; reaction functions

Tax policy cyclicality and financial development

This paper adds to the existing literature by examining the macroeconomic, political and institutional determinants of tax policy cyclicality conditional on financial development. We find that an increase in trade and financial openness leads to pro-cyclical VAT and counter-cyclical CIT rate response in high financially developed economies, while an increase in financial openness is associated with counter-cyclical VAT and PIT responses when the levels of financial development are low. A high public debt ratio leads to a counter-cyclical VAT rate response in economies with low financial development. Political power and fiscal institutions are factors that affect the tax policy cyclicality only in less financially developed economies

The financial and fiscal stress interconnectedness : the case of G5 economies

In this paper, we focus on the financial and fiscal stress transmission for the G5 economies. Using financial and fiscal stress indexes, we assess the spillovers within each economy, as well as the cross-sectional effects. Two supplementary methodologies, measuring the degree of interconnectedness, are employed. Our findings indicate that the interactions between these two kinds of distress are intensive, especially during and after the Global Financial Crisis outbreak. The above reiterates the necessity for coordinated macroprudential policies, as a means to confine the adverse effects of excessive financial and fiscal stress

Model-driven registration for multi-parametric renal MRI

The use of MR imaging biomarkers is a promising technique that may assist towards faster prognosis and more accurate diagnosis of diseases like diabetic kidney disease (DKD). The quantification of MR Imaging renal biomarkers from multiparametric MRI is a process that requires a physiological model to be fitted on the data. This process can provide accurate estimates only under the assumption that there is pixelto-pixel correspondence between images acquired over different time points. However, this is rarely the case due to motion artifacts (breathing, involuntary muscle relaxation) introduced during the acquisition. Hence, it is of vital importance for a biomarkers quantification pipeline to include a motion correctionstep in order to properly align the images and enable a more accurate parameter estimation. This study aims in testing whether a Model Driven Registration (MDR), which integrates physiological models in the registration process itself, can serve as a universal solution for the registration of multiparametric renal MRI. MDR is compared with a state-of-the-art model-free motion correction approach for multiparametric MRI, that minimizes a Principal Components Analysis based metric, performing a groupwise registration. The results of the two methods are compared on T1, DTI and DCE-MRI data for a small cohort of 10 DKD patients, obtained from BEAt-DKD project’s digital database. The majority of the evaluation metrics used to compare the two methods indicated that MDR achieved better registration results, while requiring significantly lower computational times. In conclusion, MDR could be considered as the method of choice for motion correction of multiparametric quantitative renal MRI