Archive for the ‘Irish Economy’ Category

The Cyclical Conduct of Irish Fiscal Policy

This paper is joint work with Philip Lane prepared for the Irish Economy conference at Lehigh University.

Abstract: This paper provides an overview of the cyclical conduct of …fiscal policy in Ireland both before and during the crisis. It shows that fi…scal policy has been procyclical, with …financial shocks amplifying the fi…scal cycle. In addition, it highlights the importance of institutional reform and outlines the case for a formal …scal framework.

The paper can be downloaded from here.

International Risk Sharing and the Irish Economy

This paper was written during my IRCHSS postdoctoral fellowship.

Abstract: This paper studies international risk sharing in Ireland focusing on the 1970-2007 period. To this end, we assess how consumption and national income have been affected by idiosyncratic output shocks. The study of the former shows that private consumption was partially insulated from output shocks and that risk sharing was invariant over time. The analysis of national income provides further evidence for international risk sharing. Here, we find that national income fluctuations were not fully affected by output shocks and that income risk sharing improved as Ireland became more integrated with the international financial system.

The current version of this paper can be downloaded from here.

The Impact of Government Spending Shocks on The Irish Economy

This is joint work with Philip Lane.

Abstract: We study the short-run effects of shocks to government spending on Ireland’s output and its real exchange rate. We show that the impact of government spending shocks critically depend on the nature of the fiscal innovation. Our main finding is that there are important differences between shocks to public investment and shocks to government consumption. Moreover, within the latter category, shocks to the wage and non-wage components also have dissimilar effects.

This paper is published in The Economic and Social Review 40(4): 407-434. It can be downloaded from here.