The design of fiscal adjustments
---- Acknowledgements -----
We thank Jeff Brown, Carlo Favero, Francesco Giavazzi, Paulo Mauro and participants to the 2012 AER session on Fiscal Adjustments for useful comments and Giampaolo Lecce for excellent research assistantship. Views and conclusions expressed in this paper are those of the author and do not necessarily represent those of Goldman Sachs or the National Bureau of Economic Research. The author alone is responsible for any remaining errors.