Research Catalog
What Promotes Fiscal Consolidation OECD Country Experiences
- Title
- What Promotes Fiscal Consolidation [electronic resource]: OECD Country Experiences / Stéphanie Guichard ... [et al]
- Publication
- Paris : OECD Publishing, 2007.
Available Online
Details
- Additional Authors
- Description
- 38 p.; 21 x 29.7cm.
- Summary
- Fiscal consolidation is required in most OECD countries. This is especially so in view of mediumand long-term spending pressures on public finances, related, inter alia, to ageing. Based on a dataset covering a large number of OECD fiscal consolidation episodes starting in the late 1970s, the paper presents evidence, both descriptive and econometric, on macroeconomic conditions and policy set-ups that have been effective in triggering and sustaining fiscal consolidation. Main findings include: Large initial deficits and high interest rates have been important in prompting fiscal adjustment and also in boosting the overall size and duration of consolidation. Concerning the quality of fiscal policies, an emphasis on cutting current expenditures has been associated with overall larger consolidation. Fiscal rules with embedded expenditure targets tended to be associated with larger and longer adjustments, pointing to institutional features playing a potentially important role in generating successful consolation efforts. Experience across countries also shows that certain design features such as transparency, flexibility to face shocks and effective enforcement mechanisms seem important for the effectiveness of fiscal rules.
- Series Statement
- OECD Economics Department Working Papers, 1815-1973 ; no.553
- Uniform Title
- OECD Economics Department Working Papers, no.553.
- Subject
- Economics
- LCCN
- 10.1787/180833424370
- OCLC
- oecd-lib-003954
- Title
- What Promotes Fiscal Consolidation [electronic resource]: OECD Country Experiences / Stéphanie Guichard ... [et al]
- Imprint
- Paris : OECD Publishing, 2007.
- Series
- OECD Economics Department Working Papers, 1815-1973 ; no.553OECD Economics Department Working Papers, 1815-1973 ; no.553.
- Connect to:
- Indexed Term
- Economics
- Added Author
- Guichard, Stéphanie.Kennedy, Mike.Wurzel, Eckhard.André, Christophe.
- Other Standard Identifier
- 10.1787/180833424370 doi