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Alternative Strategien der Budgetkonsolidierung in Österreich nach der Rezession

Author

Listed:
  • Achim Truger

    (Macroeconomic Policy Institute (IMK) at Hans Boeckler Foundation, Duesseldorf)

  • Katja Rietzler

    (rietzler economics)

  • Henner Will

    (Macroeconomic Policy Institute (IMK) at Hans Boeckler Foundation, Duesseldorf)

  • Rudolf Zwiener

    (Macroeconomic Policy Institute (IMK) at Hans Boeckler Foundation, Duesseldorf)

Abstract

The study develops a budget consolidation strategy for Austria that does not endanger the fragile recovery while at the same time promoting distrbutional justice. As a first step a literature review on the macroeconomic effects of discreationary fiscal policy is given. As a second step two country case studies are discussed. The failed attempts at budget consolidation in Germany during the stagnation period from 2001 to 2005 on the one hand and the successful consolidation period in the U.S. from 1993 to 2000. Against the background of the results conclusions for the future Austrian consolidation strategy are drawn: Instead of putting the recovery at risk by overambitious discreationary consolidation measures from 2011 onwards, consolidation alongside a more or less neutral expenditure growth path for discreationary giverment spending at about 3 to 3.5 per cent is recommended. Consolidation would primarily be achieved through automatic stabilisers. Compared with the currently envisaged tough restriction the solution proposed here would lead to a significantly better growth and labour market performance while at the same time not severly doing harm to the consolidation goal. If nevertheless there is a political preference for faster consolidation, this should be achieved via revenue-side measures as they usually are less harmful to growth and employment. This will be particularly the case if those taxes are increased that concentrate on high income/property households.

Suggested Citation

  • Achim Truger & Katja Rietzler & Henner Will & Rudolf Zwiener, 2010. "Alternative Strategien der Budgetkonsolidierung in Österreich nach der Rezession," IMK Studies 02-2010, IMK at the Hans Boeckler Foundation, Macroeconomic Policy Institute.
    • Handle: RePEc:imk:studie:02-2010
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    References listed on IDEAS

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    1. Stephan Schulmeister & Margit Schratzenstaller-Altzinger & Oliver Picek, 2008. "A General Financial Transaction Tax. Motives, Revenues, Feasibility and Effects," WIFO Studies, WIFO, number 31819, March.
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    Cited by:

    1. Achim Truger, 2015. "Implementing the golden rule for public investment in Europe," Working Paper Reihe der AK Wien - Materialien zu Wirtschaft und Gesellschaft 138, Kammer für Arbeiter und Angestellte für Wien, Abteilung Wirtschaftswissenschaft und Statistik.
    2. Heike Joebges & Volker Meinhard & Katja Rietzler & Rudolf Zwiener, 2012. "On the Path to Old-Age Poverty - Assessing the Impact of the Funded Riester Pension," IMK Report 73e-2012, IMK at the Hans Boeckler Foundation, Macroeconomic Policy Institute.
    3. Achim Truger & Henner Will, 2012. "Eine Finanzpolitik im Interesse der naechsen Generationen," IMK Studies 24-2012, IMK at the Hans Boeckler Foundation, Macroeconomic Policy Institute.
    4. Sebastian Gechert, 2015. "What fiscal policy is most effective? A meta-regression analysis," Oxford Economic Papers, Oxford University Press, vol. 67(3), pages 553-580.
    5. Heike Joebges & Volker Meinhard & Katja Rietzler & Rudolf Zwiener, 2012. "Auf dem Weg in die Altersarmut - Bilanz der Einführung der kapitalgedeckten Riester-Rente," IMK Report 73-2012, IMK at the Hans Boeckler Foundation, Macroeconomic Policy Institute.
    6. Alexander Herzog-Stein & Fabian Lindner & Rudolf Zwiener, 2013. "Nur das Angebot zählt?," IMK Report 87-2013, IMK at the Hans Boeckler Foundation, Macroeconomic Policy Institute.
    7. Heine, Michael & Herr, Hansjörg, 2022. "Fiskalische Spielräume für eine offensive Wohnungsbaupolitik," IPE Working Papers 176/2021, Berlin School of Economics and Law, Institute for International Political Economy (IPE).
    8. Hein, Eckhard & Truger, Achim, 2013. "Future fiscal and debt policies: Germany in the Context of the European Monetary Union," IPE Working Papers 24/2013, Berlin School of Economics and Law, Institute for International Political Economy (IPE).
    9. Alexander Herzog-Stein & Fabian Lindner & Rudolf Zwiener, 2013. "Is the supply side all that counts?," IMK Report 87e-2013, IMK at the Hans Boeckler Foundation, Macroeconomic Policy Institute.
    10. Markus Marterbauer, 2010. "Budgetkonsolidierung in Zeiten verminderter Erwartungen," Wirtschaft und Gesellschaft - WuG, Kammer für Arbeiter und Angestellte für Wien, Abteilung Wirtschaftswissenschaft und Statistik, vol. 36(3), pages 299-323.
    11. repec:ilo:ilowps:484519 is not listed on IDEAS
    12. Eicker-Wolf, Kai. & Truger, Achim., 2014. "Demystifying a "shining example" : German public finances under the debt brake," ILO Working Papers 994845193402676, International Labour Organization.
    13. Jan Behringer & Till van Treeck & Achim Truger, 2020. "How to reduce Germany's current account surplus?," Working Papers 8, Forum New Economy.
    14. Karl Aiginger & Margit Schratzenstaller-Altzinger, 2010. "Budgetkonsolidierung unter schwierigen Rahmenbedingungen – Zehn Leitlinien und erste Erfahrungen in der EU," WIFO Monatsberichte (monthly reports), WIFO, vol. 83(12), pages 941-954, December.
    15. Gustav A. Horn & Sebastian Gechert & Alexander Herzog-Stein & Katja Rietzler & Silke Tober & Sabine Stephan & Andrew Watt, 2013. "Inmitten der Krise des Euroraums - Herausforderungen für die Wirtschaftspolitik 2013," IMK Report 79-2013, IMK at the Hans Boeckler Foundation, Macroeconomic Policy Institute.

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