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Stock-Flow Adjustments, Government’s Integrated Balance Sheet and Fiscal Transparency, Mike Seiferling

This paper re-examines the stock-flow discrepancies of government debt and deficits and correlation with fiscal transparency. Applying the fully integrated relationship between financial stocks and flows allows for a more refined analysis of the deterministic components that make up the ‘stock-flow’ residual. Using partial measures of these stock-flow residuals, several empirical studies have found them to be significantly correlated with fiscaltransparency, inflation, fiscal rules, and banking crisis. Using fully integrated public finance data from the IMF Government Finance Statistics Yearbook for a sample of 22 countries, the findings in this paper suggest that stock-flow residuals have a significantly smaller magnitude than previously assumed and are, in fact, not correlated with fiscal transparency. A stronger determinant of fiscal transparency scores appears to be the actual reporting of fiscal data covering general government, especially a full financial balance sheet
Table Of Contents
Cover; Abstract; Contents; I. Introduction; II. Accounting Illusions and Fiscal Transparency; III. The Stock-Flow Adjustment Identity; IV. Empirical Considerations; Figures; 1a. and 1b. Partial and Complete Stock-Flow Residuals (1996-2010); 2. Partial and Complete Stock Flow Residuals in Greece, Norway and the United Kingdom; Tables; 1. Partial and Complete Stock-Flow Data Summary Statistics; V. Stock-Flow Adjustments and Fiscal Transparency: A Re-Examination; 3. Reporting of Government Finance Statistics to the IMF and Fiscal Transparency
Literary Form
non fiction
March 2013
Physical Description
1 online resource (26 p.)
Specific Material Designation
Form Of Item

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