Kyiv School of Economics invites to attend an academic seminar "Fiscal policy and macroeconomic volatility in the presence of political friction" by Daryna Grechyna, University of Granada. The seminar will be held in English online via Zoom. To get a link please register below.

Date&Time: Thursday, March 4, 17:00 (Kyiv time).

About the speaker. Daryna Grechyna is a Senior Lecturer at the University of Granada. She got a PhD degree from Universitat Autonoma de Barcelona, Spain, before that she graduated from Kyiv School of Economics. Daryna’s research interests are Political Economy, Public Economics, Education Economics, Dynamic Macroeconomics, Public Finance, Corporate Finance, Financial Institutions, Economic Growth.  

Abstract. This paper studies the relationship between the structure of public spending and macroeconomic outcomes in a model of optimal fiscal policy under political frictions. I distinguish between mandatory and discretionary public spending and analyze the impact of these two components of government spending  on politically-driven macroeconomic volatility. The presence of the legislative requirements behind the changes in mandatory public spending can explain the simultaneous rise in political polarization and decline in the U.S output volatility after the 1980s.

This seminar is enabled by the financial support from Sweden.