Fiscal Policy Shocks in the Euro Area and the US: An Empirical Assessment*

We analyse the impact of fiscal policy shocks in the euro area as a whole, using a newly‐available quarterly data set of fiscal variables for the period 1981–2007. To allow for comparability with previous results on euro‐area countries and the US, we use a standard structural vector autoregressive (VAR) framework, and study the impact of aggregated and disaggregated government spending and net‐tax shocks. In addition, to frame euro‐area results, we apply the same methodology for the same sample period to US data. We also explore the sensitivity of the results to the inclusion of variables aiming to control for underlying financial and fiscal conditions. The main new findings are that: expansionary fiscal shocks have a short‐term positive impact on GDP and private consumption, with government spending shocks entailing, in general, higher effects on economic activity than (net) tax reductions; output multipliers to government expenditure shocks are of similar size in the euro area and in the US; the persistence of a fiscal spending shock is higher in the US than in the euro area, which appears to be related to military spending in the US; and fiscal multipliers have increased over the recent past in both geographical areas.     

Effect of the Number of Banking Relationships on Credit Availability: Evidence from Panel Data of Spanish Small Firms

This paper investigates how the choice between single or multiple banking relationships affects credit availability for a complete panel of small and medium-sized Spanish firms. The results seem to indicate the existence of rationing, since a substitution relation has been found between trade and bank credit. We also analyse the relationship between the level of indebtedness and the interest rate for each group of firms. The results show that those SMEs that work with fewer financial intermediaries obtain fewer funds for the same increase in the interest rate, which indicates that these companies have more financial restraints.     

Evaluation of the cognitive image of a country/destination by the media during the coverage of mega‐events: the case of UEFA EURO 2004TM in Portugal

By reporting a study undertaken during the final stages of the European Football Championships—UEFA (Union of European Football Associations) EURO 2004^TM, this paper aims to evaluate the cognitive image of a country/destination by the media during the coverage of mega‐events, which may in turn contribute to the field of tourism promotion and planning. By applying various statistical methods, it is possible not only to assess and identify the aspects which have contributed the most to the opinion‐forming of autonomous agents, but also to present empirical evidence of the influence of the organisation of this event on the image formation of the destination as a whole. Copyright © 2007 John Wiley & Sons, Ltd.