CORDIS Project
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This project investigates the impact of the informal sector on fiscal policy behavior throughout the business cycle. It aims to develop a dynamic macroeconomic model that incorporates fiscal policy and the informal economy to analyze their effects on economic growth and productivity in European countries.
The proposed project aims to understand whether and how informal sector affects behavior of fiscal policy over the business cycle and then develop an economic model using the state of the art techniques of dynamic macroeconomics that incorporates fiscal policy and informal economy.
This model will be used to analyze various effects of the presence of an informal sector in European countries, specifically how it affects the cyclicality of fiscal policy and thereby economic growth and aggregate pr…
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