MétaCan
Menu
Back to cohort
Record W4406281342 · doi:10.1016/j.eap.2025.01.001

Austerity reexamined: Uncovering the role of the shadow economy

2025· article· en· W4406281342 on OpenAlexaff
Khalil Bechchani

Bibliographic record

VenueEconomic Analysis and Policy · 2025
Typearticle
Languageen
FieldEconomics, Econometrics and Finance
TopicTaxation and Compliance Studies
Canadian institutionsUniversité de Sherbrooke
Fundersnot available
KeywordsAusterityShadow (psychology)EconomicsKeynesian economicsEconomyPolitical sciencePsychology

Abstract

fetched live from OpenAlex

This paper challenges the conventional belief that austerity measures inherently trigger economic contraction. Leveraging a novel narrative dataset of fiscal consolidations across 14 Latin American and Caribbean countries (1989-2016), constructed by Carrière-Swallow, David, and Leigh (2021), I uncover that the impact of fiscal policy hinges significantly on the shadow economy's magnitude. Specifically, the output downturn post-fiscal consolidation is notable only in low-informality settings, with real GDP declining at impact by 1.12% following tax hikes and 2.77% in response to spending cuts. This effect is accompanied by crowding-out of domestic demand and higher unemployment. Intriguingly, economies with high informality levels exhibit resilience against austerity induced recession. This result holds regardless of the level of economic development, institutional quality, trade and financial openness, and the debt-to-GDP ratio.

Fetched live from OpenAlex and de-inverted. Abstracts are not stored in this database: the inverted indexes are 8.6 GB of the frame’s 9.3 GB of text, and the host has 13 GB free.

How this classification was reachedexpand

Full frame distilled prediction

Teacher imitation

Not calibrated prevalence, not ground truth. Human validation pending. Learned from the 10,348 direct Codex labels and 10,348 direct Gemma labels. Candidate is the union of thresholded teacher heads; consensus is their intersection. These outputs are machine_predicted_unvalidated and are not human labels or direct frontier model labels.

metaresearch head score (Codex)0.000
metaresearch head score (Gemma)0.000
Version: codex-gemma-dda1882f352aValidation status: machine_predicted_unvalidated
Candidate categoriesnone
Consensus categoriesnone
DomainCandidate signal: none · Consensus signal: none
Study designCandidate signal: Observational · Consensus signal: Observational
GenreCandidate signal: Empirical · Consensus signal: Empirical
Teacher disagreement score0.466
Threshold uncertainty score0.766

Codex and Gemma teacher scores by category

CategoryCodexGemma
Metaresearch0.0000.000
Meta-epidemiology (narrow)0.0000.000
Meta-epidemiology (broad)0.0000.000
Bibliometrics0.0000.000
Science and technology studies0.0000.000
Scholarly communication0.0000.000
Open science0.0000.000
Research integrity0.0000.000
Insufficient payload (model declined to judge)0.0000.000

Machine scores (provisional)

The two teacher heads of the student model, read on this work. A score orders the frame for review; it never asserts a category, and the validation status ships verbatim with every row.

Baseline scores from an immature model (maturity gate not passed, 7 training rounds). Scores rank; they never assert a category.

Opus teacher head0.013
GPT teacher head0.232
Teacher spread0.219 · how far apart the two teachers sit on this one work
Validation statusscore_only:v0-immature-baseline · verbatim from the scoring run: score_only means the number may rank works, and no category label ships from it

Classification

machine, unvalidated

Machine predicted; a candidate call from one teacher head, not a consensus.

The models applied no category: nothing in the taxonomy fit this work.
Study designObservational
Domainnot available
GenreEmpirical

How this classification was reached, model by model and score by score, is at the end of the page under "How this classification was reached".

Quick stats

Citations0
Published2025
Admission routes1
Has abstractyes

Explore more

Same venueEconomic Analysis and PolicySame topicTaxation and Compliance StudiesFrench-language works237,207