While we would have expected a #fiscal tightening to cause a temporarily fall in economic #growth in #Saudi Arabia, this is not borne by the data as the estimated impact on economic growth is not statistically significant (see Figure 8). 2/3
However, we argue that the sign of the impact would depend upon the size of #fiscal adjustment, the quality of #tax and spending measures adopted, and whether they are complemented with structural #reforms or not. 3/3
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With new variants/waves & reimposition of restrictions in some regions, governments around the world are calling for a careful assessment of the effectiveness of the adopted #Covid19#fiscal measures before they embark on further easing or tailoring of measures 2/n
The #Covid19 pandemic led to a sharp tightening of global #financial conditions at the acute phase of the crisis and has inflicted large economic losses across the world (see Figure below) ... 3/n
What are the implications of excess global financial market volatility on economic growth? Are there threshold effects in the relationship between growth & excess global volatility for individual countries? How should we model the nonlinear effects in a multi-country setting? 1/n
The #Covid19#pandemic has been a shock like no other, initiating simultaneous demand and supply disruptions. In addition, it led to a sharp tightening in global #financial market conditions during the first quarter of 2020. 3/n
Key challenges with the empirical #economic analysis of #Covid19 include the following: how to identify the shock, how to account for its non-linear effects, & how to quantify its effects while accounting for spillovers, common global factors, network effects and uncertainty. 2/n
We contribute to the literature by addressing these issues in a coherent multi-country framework. We offer an identification strategy for the #Covid19 shock considering that a synthetic control method cannot be applied in the context of a global #pandemic. 3/n
Looking forward to chatting with potential @Cambridge_Uni economics candidates later today and answering any questions you have about #economics at #Cambridge (one of the oldest economics faculties in the world) or the wonderful @Kings_College.
It has been the home of many great economists, such as Richard Kahn, Nicholas Kaldor, John Maynard Keynes, Arthur Cecil Pigou, Joan Robinson, Richard Stone and Oliver Hart to name a few.
Among @Cambridge_Uni Colleges, at King's we currently have one of the largest number of #economics Fellows, including my amazing colleagues Aytek Erdil, @elisafaraglia, @giannitsarou & Hamid Sabourian (with super interesting research interests from macroeconomics to game theory).
Like my friend Thomas, I keep getting sent articles about our teaching @Cambridge_Uni next academic year and people emailing to ask about the articles, please don’t jump to conclusions! 1/n