European Parliament Library

Stock-Flow Adjustments and Fiscal Transparency :, A Cross-Country Comparison, Anke Weber

Abstract
Over the past three decades, large and persistent discrepancies between the annual change in public debt and the budget deficit, so-called stock-flow adjustments, were a prominent feature of debt dynamics in many economies. The aim of this paper is to investigate the underlying determinants of such discrepancies and their relationship with fiscal transparency using data for 163 countries. Results show that such discrepancies can only be partly explained by balance sheet effects and the realization of contingent liabilities and that significant differences exist in average stock-flow adjustments across countries reflecting country-specific factors. The more fiscally transparent the country, the smaller these tend to be. The contribution of stock-flow adjustments to increases in debt is likewise smaller in countries with above average fiscal transparency. This may not be coincidental, as a lack of fiscal transparency may make it easier for governments to engage in deceptive fiscal stratagems
Table Of Contents
Cover; Contents; I. Introduction; II. Stock-Flow Adjustments: Definition and Some Descriptive Cross-Country Evidence; Figures; 1. Average Stock-Flow Adjustments; Tables; 1. The Distribution of Stock-Flow Adjustments, 1980-2010; III. The Role Of Stock-Flow Adjustments in Explaining Large Changes in Public Debt; 2. Accumulation of Stock-Flow Adjustments 1980-2010; 3. Decomposition of Large Episodes of Debt Changes; IV. The Main Determinants of Stock-Flow Adjustments Over The Past Three Decades; A. The Role of Financial Transactions
Language
eng
Literary Form
non fiction
Note
Description based upon print version of record
Physical Description
1 online resource (21 p.)
Specific Material Designation
remote
Form Of Item
online
Isbn
9781463984298

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