Fiscal consolidation strategy

In the aftermath of the global financial crisis and great recession, many countries face substantial deficits and growing debts. In the United States, federal government outlays as a ratio to GDP rose substantially from about 19.5 percent before the crisis to over 24 percent after the crisis. In this paper we consider a fiscal consolidation strategy that brings the budget to balance by gradually reducing this spending ratio over time to the level that prevailed prior to the crisis. A crucial issue is the impact of such a consolidation strategy on the economy. We use structural macroeconomic models to estimate this impact focussing primarily on a dynamic stochastic general equilibrium model with price and wage rigidities and adjustment costs. We separate out the impact of reductions in government purchases and transfers, and we allow for a reduction in both distortionary taxes and government debt relative to the baseline of no consolidation. According to the model simulations GDP rises in the short run upon announcement and implementation of this fiscal consolidation strategy and remains higher than the baseline in the long run. We explore the role of the mix of expenditure cuts and tax reductions as well as gradualism in achieving this policy outcome. Finally, we conduct sensitivity studies regarding the type of model used and its parameterization

A Naturalistic Study of Narrative: Exploring the Choice and Impact of Adversity Versus Other Narrative Topics

Objective: Many narrative interventions require participants to write about trauma and adverse experiences, but some research suggests that open-ended topic prompts can also be effective. In this study, we investigated the topics participants chose to write about in a values-narrative program that offered wide discretion in topic and theme, and explored how that was associated with perceptions of investment and impact. Method: Participants were 717 individuals (68% women) from the rural South, United States who had participated in a values-narrative program. Results: Almost half of the narratives (44%) focused on an adverse experience as part of the development of their personal values. Other personal stories were also common (37%), and only 19% wrote a narrative not connected to a personal life experience. Participants who had more exposure to family or peer victimization were more likely to write about adversity. Participants who wrote about adversity and shared their narratives with others reported more positive and fewer negative impacts. Encouragement and more time writing were also associated with better outcomes. Conclusion: When given the choice of essay topic, participants who chose to write about an adverse event were likely to have had a more meaningful writing experience. Values narratives offer a potentially important opportunity for incorporating narrative into primary prevention programs, because they can be used with groups that include individuals who have and have not experienced adversity. Narratives have been shown to be a powerful psychological intervention and expanding to primary prevention holds considerable promise. Further, they do not require prior disclosure of adversity. (PsycINFO Database Record (c) 2016 APA, all rights reserved

A spatial covariance (123)I-5IA-85380 SPECT study of α4β2 nicotinic receptors in Alzheimer's disease

Alzheimer's disease (AD) is characterized by widespread degeneration of cholinergic neurons, particularly in the basal forebrain. However, the pattern of these deficits and relationship with known brain networks is unknown. In this study, we sought to clarify this and used 123I-5-iodo-3-[2(S)-2-azetidinylmethoxy] pyridine (1235IA-85380) single photon emission computed tomography to investigate spatial covariance of α4β2 nicotinic acetylcholine receptors in AD and healthy controls. Thirteen AD and 16 controls underwent 1235IA-85380 and regional cerebral blood flow (99mTc-exametazime) single photon emission computed tomography scanning. We applied voxel principal component (PC) analysis, generating series of principal component images representing common intercorrelated voxels across subjects. Linear regression generated specific α4β2 and regional cerebral blood flow covariance patterns that differentiated AD from controls. The α4β2 pattern showed relative decreased uptake in numerous brain regions implicating several networks including default mode, salience, and Papez hubs. Thus, as well as basal forebrain and brainstem cholinergic system dysfunction, cholinergic deficits mediated through nicotinic acetylcholine receptors could be evident within key networks in AD. These findings may be important for the pathophysiology of AD and its associated cognitive and behavioral phenotypes