Christophe FEDER
Professor, University of Aosta Valley, Str. Cappuccini, 2, Aosta, Italy
c.feder1@univda.it
Vinko MUŠTRA
Assistant professor, Faculty of economics, business and tourism, University of Split, Cvite Fiskovića 5, Split, Croatia
vmustra@efst.hr
Abstract
After the Great Recession, in the European Union (EU) emerges an heterogenous level of both national fiscal consolidation and regional economics resilience. The paper uses the EUROSTAT database of EU-27 at NUTS 2 level over the period 2000-2009 to test how fiscal consolidation affects the regional economics resilience. We find that the fiscal consolidation and regional economic resilience are negatively correlated. Moreover, we show that the negative effect of taxation is higher than the positive effect of public spending.
Keywords: Regional economic resilience, Fiscal consolidation, Institutions, European Union
JEL classification: R12, E62, H23, H72
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