European Parliament Library

Front-Loaded or Back-Loaded Fiscal Adjustments :, What Works in Emerging Market Economies?, Benedict Clements, Sanjeev Gupta, Emanuele Baldacci, Carlos Mulas-Granados

Abstract
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
Table Of Contents
""Contents""; ""I. INTRODUCTION""; ""II. DEFINING FISCAL ADJUSTMENT""; ""III. BRIEF REVIEW OF THE LITERATURE ON FISCAL ADJUSTMENT""; ""IV. MODEL SPECIFICATION""; ""V. ECONOMETRIC RESULTS""; ""VI. POLICY IMPLICATIONS""; ""VII. CONCLUSIONS""; ""REFERENCES""
Language
eng
Literary Form
non fiction
Note
Description based upon print version of record
Physical Description
1 online resource (25 p.)
Specific Material Designation
remote
Form Of Item
online
Isbn
9781282041110

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