Fiscal Institutions And Fiscal Performance

Author : James M. Poterba,Jurgen von Hagen
Publisher : University of Chicago Press
Page : 402 pages
File Size : 50,9 Mb
Release : 2008-04-15
Category : Political Science
ISBN : 9780226676302

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Fiscal Institutions and Fiscal Performance by James M. Poterba,Jurgen von Hagen Pdf

The unprecedented rise and persistence of large-scale budget deficits in many developed and developing nations during the past three decades has caused great concern. The widespread presence of such deficits has proved difficult to explain. Their emergence in otherwise diverse nations defies particularistic explanations aimed at internal economic developments within a specific country. Fiscal Institutions and Fiscal Performance shifts emphasis away from narrow economic factors to more broadly defined political and institutional factors that affect government policy and national debt. This collection brings together new theoretical models, empirical evidence, and a series of in-depth case studies to analyze the effect of political institutions, fiscal regulations, and policy decisions on accumulating deficits. It provides a fascinating overview of the political and economic issues involved and highlights the role of budgetary institutions in the formation of budget deficits.

Author : Victor Duarte Lledo,Mr.Richard Allen,Irene Yackovlev,Eteri Kvintradze,Luis-Felipe Zanna,Sophia Gollwitzer,Ms.Era Dabla-Norris,Mr.Tej Prakash
Publisher : International Monetary Fund
Page : 58 pages
File Size : 48,9 Mb
Release : 2010-03-01
Category : Business & Economics
ISBN : 9781451982237

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Budget Institutions and Fiscal Performance in Low-Income Countries by Victor Duarte Lledo,Mr.Richard Allen,Irene Yackovlev,Eteri Kvintradze,Luis-Felipe Zanna,Sophia Gollwitzer,Ms.Era Dabla-Norris,Mr.Tej Prakash Pdf

This paper presents, for the first time, multi-dimensional indices of the quality of budget institutions in low-income countries. The indices allow for benchmarking against the performance of middle-income countries, across regions, and according to different institutional arrangements that deliver good fiscal performance. Using the constructed indices, the paper provides preliminary empirical support for the hypotheses that strong budget institutions help improve fiscal balances and public external debt outcomes; and countries with stronger fiscal institutions have better scope to conduct countercyclical policies.

Author : José Edgardo L. Campos,Sanjay Kumar Pradhan
Publisher : World Bank Publications
Page : 68 pages
File Size : 54,6 Mb
Release : 1996
Category : Expenditures, Public
ISBN : 8210379456XXX

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Budgetary Institutions and Expenditure Outcomes by José Edgardo L. Campos,Sanjay Kumar Pradhan Pdf

Author : Rolf R. Strauch,Jürgen von Hagen
Publisher : Springer Science & Business Media
Page : 273 pages
File Size : 42,5 Mb
Release : 2012-12-06
Category : Political Science
ISBN : 9781461545552

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Institutions, Politics and Fiscal Policy by Rolf R. Strauch,Jürgen von Hagen Pdf

Rolf R. Strauch and Jiirgen von Hagen Center for European Integration Studies (ZEI), University of Bonn; ZEI, University of Bonn, Indiana University, and CEPR The large and persistent deficits, rising levels of debt and growing levels of public spending observed in many DECO economies during the past 25 years have stimulated much theoretical and empirical research on the political economy of public finance. Although a number of issues have been studied extensively, certain areas are still at an exploratory stage and need further theorizing and thorough empirical research. During the last two decades, the theoretical debate on budgeting has been dominated by the controversy between partisan and institutionalist approaches. Within the more political-science oriented, institutionalist literature, a controversy exists between the distributive and the informational perspectives, each setting forth a distinctive organizational rationale of parliaments with different fiscal implications. The papers in this volume cover these different perspectives, extend previous models, and test their empirical validity. The papers were originally written for a conference on "Institutions, Politics, and Fiscal Policy" organized by the Center for European Integration Studies at the University of Bonn, Germany, in July 1998. The book is organized in three parts each focusing on a distinctive aspect. The first part is dedicated to the partisan perspective. The second part focuses on budget institutions. The third part consists of three case studies of institutional reform of the budget process. This book is directed to academics and practitioners alike.

Author : Xavier Debrun,Manmohan S. Kumar
Publisher : International Monetary Fund
Page : 54 pages
File Size : 53,8 Mb
Release : 2007-07
Category : Business & Economics
ISBN : UCSD:31822034966184

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The Discipline-Enhancing Role of Fiscal Institutions by Xavier Debrun,Manmohan S. Kumar Pdf

This paper discusses the role of fiscal institutions, including budget rules and non-partisan agencies, in enhancing fiscal discipline. A dynamic model of fiscal policy shows that optimal institutions lack credibility unless the costs to bypass them are sufficiently high. In our model, a combination of complete budgetary transparency and strong democratic accountability suffice to establish credibility. Under incomplete budgetary transparency, accountable governments may also use institutions as a signal of competence to increase their reelection chances, which in turn erodes the penchant for excessive deficits. In light of the theory, empirical tests of the effectiveness of institutions are undertaken. The results further emphasize that analysis should pay due attention to simultaneity bias (because disciplined governments may be more likely to adopt strict institutions). Also, interactions among different fiscal institutions, and between the latter and key features of the political system need to be explored further.

Author : International Monetary Fund
Publisher : International Monetary Fund
Page : 63 pages
File Size : 55,5 Mb
Release : 2013-07-16
Category : Business & Economics
ISBN : 9781498341493

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The Functions and Impact of Fiscal Councils by International Monetary Fund Pdf

In recent years, a rapidly growing number of countries have established independent agencies aimed at promoting sound fiscal policies. Although these institutions vary greatly in terms of their remit, tasks, and institutional forms, they tend to share an explicit mandate enshrined in legislation, a “watchdog” role implying a direct contribution to the public debate on fiscal policy, and strict non-partisanship in their activities. Importantly, fiscal councils do not have the discretion to set policy instruments. Unlike independent central banks in the monetary policy area, they are only facilitators of sound fiscal public finances, not decision makers deliberately insulated from politics. Earlier IMF staff analysis of non-partisan fiscal agencies (IMF, 2005, expanded by Debrun, Hauner and Kumar, 2009) referred to the generic term of “fiscal council” to designate these institutions. A handful of similar bodies have been in place for a long time—mostly in advanced economies.

Author : Ed Campos
Publisher : Unknown
Page : 68 pages
File Size : 52,8 Mb
Release : 2016
Category : Electronic
ISBN : OCLC:1290705284

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Budgetary Institutions and Expenditure Outcomes by Ed Campos Pdf

Author : Ed Campos,Eduardo Bueno Campos,Jose Edgardo L. Campos,Sanjay Pradhan,Banco Mundial
Publisher : Unknown
Page : 0 pages
File Size : 45,9 Mb
Release : 1996
Category : Electronic
ISBN : OCLC:1192941884

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Budgetary Institutions and Expenditure Outcomes by Ed Campos,Eduardo Bueno Campos,Jose Edgardo L. Campos,Sanjay Pradhan,Banco Mundial Pdf

Author : Anwar Shah
Publisher : World Bank Publications
Page : 55 pages
File Size : 52,6 Mb
Release : 2005
Category : Federal government
ISBN : 8210379456XXX

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Fiscal Decentralization and Fiscal Performance by Anwar Shah Pdf

Fiscal rules binding on all levels can help sustain political commitment in countries having coalitions or fragmented regimes in power. Coordinating institutions help in the use of moral suasion to encourage a coordinated response. Industrial countries' experiences also show that unilaterally imposed federal controls and constraints on subnational governments typically do not work. Instead, societal norms based on fiscal conservatism such as the Swiss referenda and political activism of the electorate play important roles. Ultimately capital markets and bond-rating agencies provide more effective discipline on fiscal policy. In this context, it is important not to backstop state and local debt and not to allow ownership of the banks by any level of government. Transparency of the budgetary process and institutions, accountability to the electorate, and general availability of comparative data encourages fiscal discipline.

Author : Mr.Roel M. W. J. Beetsma,Mr.Xavier Debrun
Publisher : International Monetary Fund
Page : 26 pages
File Size : 54,7 Mb
Release : 2016-04-08
Category : Business & Economics
ISBN : 9781484322901

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Fiscal Councils by Mr.Roel M. W. J. Beetsma,Mr.Xavier Debrun Pdf

The paper discusses the effectiveness of independent fiscal institutions—or fiscal councils—in taming the deficit bias that emerged in the 1970s. After a review of the main theoretical arguments and recent trends about fiscal councils, we develop a stylized model showing how a fiscal council can effectively mitigate the deficit bias even though it has no direct lever on the conduct of fiscal policy. We show that the capacity of the fiscal council to improve the public’s understanding of the quality of fiscal policy contributes to better align voters and policymakers’ incentives and to tame the deficit bias affecting well-intended governments. After mapping the model’s key features into a broad set of criteria likely to contribute to the effectiveness of a fiscal council, we use the 2014 vintage of the IMF dataset on independent fiscal institutions to assess whether existing institutions have been built to work.

Author : Mr.Roel M. W. J. Beetsma,Mr.Xavier Debrun,Xiangming Fang,Young Kim,Victor Duarte Lledo,Samba Mbaye,Xiaoxiao Zhang
Publisher : International Monetary Fund
Page : 28 pages
File Size : 48,8 Mb
Release : 2018-03-29
Category : Business & Economics
ISBN : 9781484351383

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Independent Fiscal Councils: Recent Trends and Performance by Mr.Roel M. W. J. Beetsma,Mr.Xavier Debrun,Xiangming Fang,Young Kim,Victor Duarte Lledo,Samba Mbaye,Xiaoxiao Zhang Pdf

Countries increasingly rely on independent fiscal councils to constrain policymakers’ discretion and curb the bias towards excessive deficits and pro-cyclical policies. Since fiscal councils are often recent and heterogeneous across countries, assessing their impact is challenging. Using the latest (2016) vintage of the IMF Fiscal Council Dataset, we focus on two tasks expected to strengthen fiscal performance: the preparation or assessment of forecasts, and the monitoring of compliance with fiscal rules. Tentative econometric evidence suggests that the presence of a fiscal council is associated with more accurate and less optimistic fiscal forecasts, as well as greater compliance with fiscal rules.

Author : Ms.Ana Corbacho,Leandro Medina,Carlos Caceres
Publisher : International Monetary Fund
Page : 29 pages
File Size : 53,8 Mb
Release : 2010-11-01
Category : Business & Economics
ISBN : 9781455209484

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Structural Breaks in Fiscal Performance by Ms.Ana Corbacho,Leandro Medina,Carlos Caceres Pdf

In recent years, many countries have adopted Fiscal Responsibility Laws to strengthen fiscal institutions and promote fiscal discipline in a credible, predictable and transparent manner. Still, results on the effectiveness of these laws remain tentative. In this paper, we test empirically whether fiscal performance, measured as the level of primary fiscal balances and their volatility, indeed improved after the implementation of Fiscal Responsibility Laws in a sample of Latin American and advanced economies. We show that traditional econometric approaches, which rely on the use of dummies in time series or panel regressions, yield biased estimates. In contrast, our empirical strategy recognizes that, a priori, the timing of the effect of these laws on fiscal performance is unknown, while controlling for the impact of the business and commodity cycles on fiscal outcomes. Overall, we find limited empirical evidence in support of the view that Fiscal Responsibility Laws have had a distinguishable effect on fiscal performance. However, Fiscal Responsibility Laws could still have other positive effects on the conduct of fiscal policy not analyzed here, for instance, through enhanced transparency and guidance in the budget process and lower risk premia.

Author : Mario Sanginés,Joan Oriol Prats Cabrera,Carlos Pimenta,Gustavo García Osío,Juan Pablo Martínez Guzman,Mario Marcel,Pedro Farias,Gustavo Crespi,Martin D. Chrisney,Ana Corbacho
Publisher : Inter-American Development Bank
Page : 198 pages
File Size : 44,9 Mb
Release : 2013-10-07
Category : Business & Economics
ISBN : 9781597821698

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The Fiscal Institutions of Tomorrow by Mario Sanginés,Joan Oriol Prats Cabrera,Carlos Pimenta,Gustavo García Osío,Juan Pablo Martínez Guzman,Mario Marcel,Pedro Farias,Gustavo Crespi,Martin D. Chrisney,Ana Corbacho Pdf

The Fiscal Institutions of Tomorrow, the first publication in the series Institutions for People, addresses issues of public management that are key to economic development in Latin America and the Caribbean. It presents the challenges that the countries in the region face to strengthen fiscal institutions with a view to the future and with policy recommendations. This publication serves as reference material for policymakers and economic analysts interested in studying the evolution of fiscal institutions in the region and identifying areas to improve governance.

Author : Manmohan S. Kumar,Teresa Ter-Minassian,International Monetary Fund
Publisher : International Monetary Fund
Page : 154 pages
File Size : 44,8 Mb
Release : 2007-10-18
Category : Business & Economics
ISBN : STANFORD:36105124300927

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Promoting Fiscal Discipline by Manmohan S. Kumar,Teresa Ter-Minassian,International Monetary Fund Pdf

Fiscal discipline is essential to improve and sustain economic performance, maintain macroeconomic stability, and reduce vulnerabilities. Discipline is especially important if countries, industrial as well as developing, are to successfully meet the challenges, and reap the benefits, of economic and financial globalization. Lack of fiscal discipline generally stems from the injudicious use of policy discretion. The benefits of discretion are seen in terms of the ability of policymakers to respond to unexpected shocks and in allowing elected political representatives to fulfill their mandates. But discretion can be misused, resulting in persistent deficits and procyclical policies, rising debt levels, and, over time, a loss in policy credibility. The authors first explore the role of discretion in fiscal policy, and the extent, consequences, and causes of procyclicality, particularly in good times. They then examine how a variety of institutional approaches—fiscal rules, fiscal responsibility laws, and fiscal agencies—can help improve fiscal discipline. While each of these approaches can play a useful role, the authors suggest that a strategy combining them is likely to be particularly beneficial. Although such a strategy requires political commitment and effective fiscal management, at the same time, the strategy itself can bolster political commitment by highlighting the restraints on government and raising the costs of failing to respect them.

Author : Mr.Xavier Debrun,Mr.Tidiane Kinda
Publisher : International Monetary Fund
Page : 35 pages
File Size : 55,5 Mb
Release : 2014-04-08
Category : Business & Economics
ISBN : 9781475525151

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Strengthening Post-Crisis Fiscal Credibility by Mr.Xavier Debrun,Mr.Tidiane Kinda Pdf

Institutions aimed at constraining policy discretion to promote sound fiscal policies are once again at the forefront of the policy debate. Interest in “fiscal councils,” independent watchdogs active in the public debate, has grown rapidly in recent years. This paper presents the first cross-country dataset summarizing key characteristics of fiscal councils among IMF members. The data documents a surge in the number of fiscal councils since the crisis. It also illustrates that well-designed fiscal councils are associated with stronger fiscal performance and better macroeconomic and budgetary forecasts. Key features of effective fiscal councils include operational independence from politics, the provision or public assessment of budgetary forecasts, a strong presence in the public debate, and the monitoring of compliance with fiscal policy rules.