Macroeconomic impacts of politics and policy: Applications to financial and real markets

A PhD Dissertation, presented as part of the requirements for the Degree of Doctor of Philosophy from the NOVA - School of Business and Economics

The role of income inequality on fiscal multipliers

A Work Project, presented as part of the requirements for the Award of a Masters Double Degree in Economics from the Nova School of Business and Economics and University of Maastricht

US fiscal dynamics in political perspective

Given the importance of fiscal balance for ensuring a sustainable fiscal policy, we conduct an empirical examination of fiscal dynamics in the United States in response to unsustainable budget deviations. We concentrate on the role of political factors, namely the Republican - Democrat presidential divide, in determining the fiscal response to budget disequilibria. Making use of an asymmetric cointegration framework, we explore politically motivated fiscal asymmetries in the US, from Eisenhower to Obama. We conclude that political factors such as the government’s political quadrant and the timing of elections are important determinants of the fiscal response to unsustainable budget deviations.

Incidencia de la política de autonomía fiscal de los Estados miembros de la UE en el comercio intrazona. Estudio de caso: El Impuesto Excepcional de Crisis húngaro en su relación comercial con Austria y Alemania. Período 2010-2011

En el año 2010 el gobierno húngaro implementó el Impuesto Excepcional de Crisis, que grava a las empresas del sector de telecomunicaciones, energía y agroalimentario con el fin de hacer frente a los graves problemas fiscales que aquejaban a Hungría. Dicho impuesto se enmarca dentro de la política de autonomía fiscal de los Estados miembros de la UE, ya que cada gobierno tiene potestad para determinar la cuantía de los impuestos sobre las empresas con el fin de que se puedan cumplir los intereses económicos nacionales; aun así, dicha autonomía se basa en el respeto al tratado de Maastricht y al pacto de estabilidad y crecimiento, que establecen que las políticas fiscales de los Estados miembros deben estar en armonía con la libre circulación de mercancías, servicios y capitales, así como un trato equitativo a todas las empresas, ya sean nacionales o extranjeras. Este gravamen recae principalmente en empresas ligadas al sector de las exportaciones en Hungría, con nacionalidad de Austria y Alemania, los principales socios comerciales de Hungría, afectando de esta forma las relaciones comerciales de los actores en mención. Así, el trabajo analiza las implicaciones que tiene dicho impuesto para la consecución del interés económico de Hungría, a partir de su incidencia en las metas fiscales y el comercio que este Estado tiene con Austria y Alemania.

The challenges of Europe's fourfold union. Bruegel Policy Contribution 2012/13, 16 August 2012

Five years after the first tremors in Europe’s banking system, what makes the crisis unique is the absence of a democratically accountable decision-making framework; there is an 'executive deficit' that compounds Europe’s democratic deficit. The author argues that the only way to resolve the crisis successfully is a sustained effort to achieve a 'fourfold union' agenda: banking union, fiscal union, competitiveness union and political union. Progress must be made in parallel on each of the four components. In particular, successful progress towards banking union requires a combination of short term action, including the establishment of a temporary resolution authority to identify undercapitalised banks and to restructure them, and longer-term measures, including the creation of permanent authorities for supervision, resolution and deposit insurance.

Unlocking Australia's relationship with the Middle East

Historically, Australia’s interests in the Middle East related primarily to its role in the Commonwealth imperial defence system which resulted in the deployment of Australian forces in the Middle East during both the First and Second World Wars. Similarly, the current involvement of Australian troops in Iraq and Afghanistan is driven by the country’s strategic alliance with the United States. However, Australia’s current involvement reflects a multifaceted relationship that spans economic, political and strategic spheres. Yet it is at the level of cultural and civilisational contacts that this relationship appears at its most vulnerable. This paper argues that a deeper understanding of this cultural dimension combined with a broader emphasis on good governance and human rights would be conducive to more robust ties in the longer term.

Australia's regional forest agreement process: analysis of the potential and problems

The 1990s heralded a new era in forest policy in Australia with the introduction of The National Forest Policy Statement which provided a framework under which native forest resources would be protected whilst also permitting ecologically sustainable timber harvesting. However, the implementation of the statement through the Regional Forest Agreements by state governments appear to contradict the conditions of the policy. Political bias towards development imperatives in implementing RFAs is evident. Community involvement in RFAs has not been satisfactory for sustainable forest use and management, with ongoing dissatisfaction from some stakeholder groups. There is still increased demand for protection of what remains of the various forest reserves. Aboriginal issues have not been settled in line with the expectation of the policy. There are continuing conflicts between the Commonwealth Government and some state governments