Front-Loaded or Back-Loaded Fiscal Adjustments : What Works in Emerging Market Economies? /

This paper investigates the political and economic determinants of successful fiscal adjustment in 25 emerging market economies from 1980 to 2001. The results show that large and back-loaded fiscal adjustments have the highest likelihood of success. Fiscal consolidations based on expenditure cuts in...

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Detalles Bibliográficos
Autor principal: Clements, Benedict
Otros Autores: Baldacci, Emanuele, Gupta, Sanjeev, Mulas-Granados, Carlos
Formato: Revista
Lenguaje:English
Publicado: Washington, D.C. : International Monetary Fund, 2004.
Colección:IMF Working Papers; Working Paper ; No. 2004/157
Acceso en línea:Full text available on IMF
Descripción
Sumario:This paper investigates the political and economic determinants of successful fiscal adjustment in 25 emerging market economies from 1980 to 2001. The results show that large and back-loaded fiscal adjustments have the highest likelihood of success. Fiscal consolidations based on expenditure cuts increase the probability of approaching and achieving fiscal sustainability but are insufficient to maintain it unless accompanied by revenue reforms. Adjustment episodes launched in countries where governments enjoy a parliamentary majority and do not face imminent elections, are found to be more successful. Fiscal consolidations undertaken under IMF-supported programs also have a higher probability of success.
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Descripción Física:1 online resource (25 pages)
Formato:Mode of access: Internet
ISSN:1018-5941
Acceso:Electronic access restricted to authorized BRAC University faculty, staff and students