Fiscal Adjustments

Author : Mr.Alberto Alesina,Mr.Roberto Perotti
Publisher : International Monetary Fund
Page : 52 pages
File Size : 55,7 Mb
Release : 1996-07-01
Category : Business & Economics
ISBN : 9781451960433

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Fiscal Adjustments in OECD Countries by Mr.Alberto Alesina,Mr.Roberto Perotti Pdf

This paper studies how the composition of fiscal adjustments influences their likelihood of “success”, defined as a long lasting deficit reduction, and their macroeconomic consequences. We find that fiscal adjustments which rely primarily on spending cuts on transfers and the government wage bill have a better chance of being successful and are expansionary. On the contrary fiscal adjustments which rely primarily on tax increases and cuts in public investment tend not to last and are contractionary. We discuss alterative explanations for these findings by studying both a full sample of OECD countries and by focusing on three case studies: Denmark, Ireland and Italy.

Author : Mr.Mark A. Horton,Mr.George C. Tsibouris,Wojciech Maliszewski,Mr.Mark J Flanagan
Publisher : International Monetary Fund
Page : 56 pages
File Size : 48,7 Mb
Release : 2006-06-14
Category : Business & Economics
ISBN : 1589064585

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Experience with Large Fiscal Adjustments by Mr.Mark A. Horton,Mr.George C. Tsibouris,Wojciech Maliszewski,Mr.Mark J Flanagan Pdf

When policymakers have little option but to consider a sizable fiscal adjustment, they are confronted by the following questions: Can a large fiscal adjustment be implemented succesfully? How is a large adjustment best designed and implemented? What will be its impact on the economy? This Occasional Paper addresses these questions by describing the experience of countries that have undertaken large fiscal adjustments in the last three decades. It provides operational guidance to policymakers by identifying preconditions, common policy approaches, and institutional arrangements underlying successful and unsuccessful adjustment episodes.

Author : Mr.C. John McDermott,Mr.Robert F. Westcott
Publisher : International Monetary Fund
Page : 26 pages
File Size : 45,6 Mb
Release : 1996-06-01
Category : Business & Economics
ISBN : 9781451965957

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An Empirical Analysis of Fiscal Adjustments by Mr.C. John McDermott,Mr.Robert F. Westcott Pdf

This study uses the fiscal expansion and consolidation experiences of the industrial countries over the period 1970 to 1995 to examine the interplay between fiscal adjustments and economic performance. A key finding is that fiscal consolidation need not trigger an economic slowdown. Fiscal consolidation that concentrates on the expenditure side, and especially on transfers and government wages, is more likely to succeed in reducing the public debt ratio than tax-based consolidation. Also, the greater the magnitude of the fiscal consolidation, the more likely it is to succeed in reducing the debt ratio.

Author : Daniel Leigh,Alexander Plekhanov,Manmohan S. Kumar
Publisher : International Monetary Fund
Page : 44 pages
File Size : 41,5 Mb
Release : 2007-07
Category : Business & Economics
ISBN : UCSD:31822036518447

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Fiscal Adjustments by Daniel Leigh,Alexander Plekhanov,Manmohan S. Kumar Pdf

The paper analyzes the determinants of success of recent fiscal consolidations in the OECD countries as well as the short-run and long-run effects of fiscal adjustments on economic activity by looking at fourteen case studies, panel data for OECD countries, and the results of simulations using a non-Ricardian multi-country dynamic general equilibrium model. The study finds that while fiscal consolidations tend to have short-run contractionary effects, they can be expansionary in the long run, provided that they do not rely excessively on cuts in productive government expenditure. They can also create positive spillover effects for the rest of the world.

Author : Mr.James Daniel
Publisher : International Monetary Fund
Page : 80 pages
File Size : 50,6 Mb
Release : 2006-08-17
Category : Business & Economics
ISBN : 1589065131

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Fiscal Adjustment for Stability and Growth by Mr.James Daniel Pdf

The pamphlet (which updates the 1995 Guidelines for Fiscal Adjustment) presents the IMF’s approach to fiscal adjustment, and focuses on the role that sound government finances play in promoting macroeconomic stability and growth. Structured around five practical questions—when to adjust, how to assess the fiscal position, what makes for successful adjustment, how to carry out adjustment, and which institutions can help—it covers topics such as tax policies, debt sustainability, fiscal responsibility laws, and transparency.

Author : Barbara Fakin,Alain de Crombrugghe
Publisher : World Bank Publications
Page : 38 pages
File Size : 45,5 Mb
Release : 1997
Category : Ajuste estructural
ISBN : 8210379456XXX

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Fiscal Adjustments in Transition Economies by Barbara Fakin,Alain de Crombrugghe Pdf

Author : Mr. Nicolas E Magud,Samuel Pienknagura
Publisher : International Monetary Fund
Page : 55 pages
File Size : 43,5 Mb
Release : 2022-04-08
Category : Business & Economics
ISBN : 9798400204845

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The Return of Expansionary Austerity: Firms’ Investment Response to Fiscal Adjustments in Emerging Markets by Mr. Nicolas E Magud,Samuel Pienknagura Pdf

We study the response of corporate investment in Emerging Markets to unexpected fiscal shocks. We find that, although firm-level investment decreases on impact following unexpected public expenditure adjustments (classical Keynesian multiplier effect), it quickly rises above pre-shock levels. The rebound in investment is facilitated by fiscal space, flexible exchange rates, and more predictable fiscal policy. We also show that the composition of fiscal adjustments matters for investment’s response—compared to public investment adjustments, reductions in public consumption lead to larger private investment contractions on impact, but drive private investment to above pre-shock levels. Finally, we exploit firm-level heterogeneity in several dimensions, including to show that corporate investment’s recovery is stronger in firms in the tradable sector and in larger and less indebted firms, and to show that the long-run benefits to economic activity of the fiscal shock appear to outweigh its short-run costs.

Author : International Monetary Fund. Fiscal Affairs Dept.
Publisher : International Monetary Fund
Page : 64 pages
File Size : 53,6 Mb
Release : 2006-01-27
Category : Business & Economics
ISBN : 9781498333016

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Fiscal Adjustment for Stability and Growth by International Monetary Fund. Fiscal Affairs Dept. Pdf

This paper aims to inform policymakers, and other interested parties, about the IMF’s approach to fiscal adjustment. The approach focuses on the role of sound and sustainable government finances in promoting macroeconomic stability and growth. Achieving, and maintaining, such a fiscal position often requires adjusting fiscal policy, as well as strengthening fiscal institutions. Fiscal adjustment may involve either tightening or loosening the fiscal stance, depending on individual country circumstances.

Author : International Monetary Fund. Independent Evaluation Office
Publisher : International Monetary Fund
Page : 128 pages
File Size : 50,9 Mb
Release : 2003-11-17
Category : Business & Economics
ISBN : 9781589062740

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Fiscal Adjustment in IMF-Supported Programs by International Monetary Fund. Independent Evaluation Office Pdf

Using a cross-country sample of 169 IMF-supported programs and detailed studies of 15 programs, this evaluation report examines various aspects of fiscal adjustment in IMF-supported programs. It presents evidence that does not support some critics’ view that IMF-supported programs typically adopt a one-size-fits-all approach to fiscal adjustment, nor the perception that programs always involve austerity by targeting reductions in public spending. The report also proposes a number of recommendations for IMF surveillance and program design in the future.

Author : Mr.Emanuele Baldacci,Mr.Sanjeev Gupta,Mr.Carlos Mulas-Granados
Publisher : International Monetary Fund
Page : 37 pages
File Size : 55,9 Mb
Release : 2013-11-22
Category : Business & Economics
ISBN : 9781475516500

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Debt Reduction, Fiscal Adjustment, and Growth in Credit-Constrained Economies by Mr.Emanuele Baldacci,Mr.Sanjeev Gupta,Mr.Carlos Mulas-Granados Pdf

This paper assesses the effects of fiscal consolidations associated with public debt reduction on medium-term output growth during periods of private debt deleveraging. The analysis covers 107 countries and 79 episodes of public debt reduction driven by discretionary fiscal adjustments during 1980–2012. It shows that expenditure-based, front-loaded fiscal adjustments can dampen growth when there are credit supply restrictions. Instead, fiscal adjustments that are gradual and rely on a mix of revenue and expenditure measures can support output expansion, while reducing public debt. In this context, protecting public investment is critical for medium-term growth, as is the implementation of supply-side, productivity-enhancing reforms.

Author : William Russell Easterly
Publisher : World Bank Publications
Page : 36 pages
File Size : 42,5 Mb
Release : 1999
Category : Assets (Accounting)
ISBN : 8210379456XXX

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When is Fiscal Adjustment an Illusion? by William Russell Easterly Pdf

Author : Rossen Rozenov
Publisher : International Monetary Fund
Page : 51 pages
File Size : 54,9 Mb
Release : 2016-03-17
Category : Business & Economics
ISBN : 9781475521795

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Optimal Fiscal Adjustment under Uncertainty by Rossen Rozenov Pdf

The paper offers a non-probabilistic framework for representation of uncertainty in the context of a simple linear-quadratic model of fiscal adjustment. Instead of treating model disturbances as random variables with known probability distributions, it is only assumed that they belong to some pre-specified compact set. Such an approach is appropriate when the decision maker does not have enough information to form probabilistic beliefs or when considerations for robustness are important. Solution of the model in the minimax sense when disturbance sets are ellipsoids is obtained and the application of the method is illustrated using the example of Portugal.

Author : Alberto F. Alesina
Publisher : Unknown
Page : 52 pages
File Size : 54,9 Mb
Release : 2006
Category : Electronic
ISBN : OCLC:1291214324

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Fiscal Adjustments in OECD Countries by Alberto F. Alesina Pdf

This paper studies how the composition of fiscal adjustments influences their likelihood of quot;successquot;, defined as a long lasting deficit reduction, and their macroeconomic consequences. We find that fiscal adjustments which rely primarily on spending cuts on transfers and the government wage bill have a better chance of being successful and are expansionary. On the contrary fiscal adjustments which rely primarily on tax increases and cuts in public investment tend not to last and are contractionary.We discuss alterative explanations for these findings by studying both a full sample of OECD countries and by focusing on three case studies: Denmark, Ireland and Italy.

Author : Jaime de Melo,Riccardo Faini
Publisher : Springer
Page : 232 pages
File Size : 54,8 Mb
Release : 1993-07-15
Category : Business & Economics
ISBN : 9781349227907

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Fiscal Issues in Adjustment in Developing Countries by Jaime de Melo,Riccardo Faini Pdf

The book deals with aspects of the recent fiscal crisis in developing countries. Macro aspects cover theoretical underpinning of fiscal policy, the size of the required adjustment and the link between internal and external transfers. Micro aspects cover the relation between private and public investment, the experience of tax and expenditure reforms, and the impact of fiscal adjustment on the poor.

Author : Mr.Salvatore Dell'Erba,Mr.Todd D. Mattina,Agustin Roitman
Publisher : International Monetary Fund
Page : 40 pages
File Size : 40,5 Mb
Release : 2013-07-17
Category : Business & Economics
ISBN : 9781484374054

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Pressure or Prudence? Tales of Market Pressure and Fiscal Adjustment by Mr.Salvatore Dell'Erba,Mr.Todd D. Mattina,Agustin Roitman Pdf

We study whether multiyear fiscal adjustment plans in 17 OECD countries during 1980-2011 have been associated with market pressure. We find that only a third (34 percent) of the consolidations occurred under market pressure, suggesting that market pressure is important but not the main element associated with consolidation plans. Many adjustments under market pressure were also clustered around external shocks, and entailed larger median fiscal adjustments than other multiyear consolidations. In contrast, we find that virtually all multiyear consolidations aimed at reducing budget deficits occurred with initially weak macro-fiscal fundamentals.