Micro and Macro essays in Applied Fiscal Policy

This thesis analysis micro and macro aspect of applied fiscal policy issues. The first chapter investigates the extent to which local budget spending composition reacts to fiscal rules variations. I consider the budget of Italian municipalities and exploit specific changes in the Domestic Stability Pact’s rules, to perform a difference-in-discontinuities analysis. The results show that imposing a cap on the total amount of consumption and investment is not as binding as two caps, one for consumption and a different one for investment. More specifically, consumption is triggered by changes in wages and services spending, while investment relies on infrastructure movements. In addition, there is evidence that when an increase in investment is achieved, there is also a higher budget deficit level. The second chapter intends to analyze the extent to which fiscal policy shocks are able to affect macrovariables during business cycle fluctuations, differentiating among three intervention channels: public taxation, consumption and investment. The econometric methodology implemented is a Panel Vector Autoregressive model with a structural characterization. The results show that fiscal shocks have different multipliers in relation to expansion or contraction periods: output does not react during good times while there are significant effects in bad ones. The third chapter evaluates the effects of fiscal policy announcements by the Italian government on the long-term sovereign bond spread of Italy relative to Germany. After collecting data on relevant fiscal policy announcements, we perform an econometric comparative analysis between the three cabinets that followed one another during the period 2009-2013. The results suggest that only fiscal policy announcements made by members of Monti’s cabinet have been effective in influencing significantly the Italian spread in the expected direction, revealing a remarkable credibility gap between Berlusconi’s and Letta’s governments with respect to Monti’s administration.

Experimental and Numerical Analysis of Gas Flows in Microchannels and Micro Heat Exchanger

Due to increased interest in miniaturization, great attention has been given in the recent decade to the micro heat exchanging systems. Literature survey suggests that there is still a limited understanding of gas flows in micro heat exchanging systems. The aim of the current thesis is to further the understanding of fluid flow and heat transfer phenomenon inside such geometries when a compressible working fluid is utilized. A combined experimental and numerical approach has been utilized in order to overcome the lack of employable sensors for micro dimensional channels. After conducting a detailed comparison between various data reduction methodologies employed in the literature, the best suited methodology for gas microflow experimentalists is proposed. A transitional turbulence model is extensively validated against the experimental results of the microtubes and microchannels under adiabatic wall conditions. Heat transfer analysis of single microtubes showed that when the compressible working fluid is used, Nusselt number results are in partial disagreement with the conventional theory at highly turbulent flow regime for microtubes having a hydraulic diameter less than 250 microns. Experimental and numerical analysis on a prototype double layer microchannel heat exchanger showed that compressibility is detrimental to the thermal performance. It has been found that compressibility effects for micro heat exchangers are significant when the average Mach number at the outlet of the microchannel is greater than 0.1 compared to the adiabatic limit of 0.3. Lastly, to avoid a staggering amount of the computational power needed to simulate the micro heat exchanging systems with hundreds of microchannels, a reduced order model based on the porous medium has been developed that considers the compressibility of the gas inside microchannels. The validation of the proposed model against experimental results of average thermal effectiveness and the pressure loss showed an excellent match between the two.