Fiscal consolidation

Molnár, Margit

doi:10.1787/eco_studies-2012-5k8zs3twgmjc

Cited by 29 publications

(16 citation statements)

References 0 publications

Supporting

Mentioning

Contrasting

Unclassified

Order By: Relevance

“…When it comes to quantifying fiscal sustainability, most papers pay attention to how countries are entering a 'dangerous new phase', and define debt by highlighting at what level will a country go into a fiscal crisis-see the discussions in some works [30][31][32][33]. Others do not contest the relevance and influence of independent fiscal institutions or the status of fiscal transparency [10,[34][35][36].…”

Section: Motivation and Econometric Methodologymentioning

confidence: 99%

The Implication of Fiscal Principles and Rules on Promoting Sustainable Public Finances in the EU Countries

et al. 2020

View full text Add to dashboard Cite

The purpose of this study was to analyze fiscal behavior in the European Union countries, to highlight the implications of institutional constraints on healthy fiscal attitudes, and to test the relationship between government decisions, fiscal responsibility instruments, and the sustainability of public finances during the period 2000–2014. By using panel data analysis, we tested the responsiveness of primary balance to government indebtedness, as well as to some determinants of fiscal responsibility, such as the degree of public spending or fiscal rules effectiveness, and we included two different perspectives regarding fiscal rules status. First, we computed a fiscal responsibility index, which measures the applicability of or compliance with the fiscal rules, referring to legal dimensions and administrative and institutional capacity. Second, we established a fiscal responsibility convergence index, which measures the status of the EU Member States regarding the approach of numerical rules. The empirical findings indicate that fiscal authorities do not act to the existing stock of public debt and highlights a negative response of budget balances to the stock of outstanding debt. Fiscal position improves when the index of fiscal responsibility is involved and countries become more sustainable when they are related to the entire level of fiscal governance, with respect to legal framework, institutional and administrative capacity, but at the debt ratio threshold of over 90%, the effect of the overall fiscal rule comes out as less relevant for the improvement of the primary balance.

show abstract

Section: Motivation and Econometric Methodologymentioning

confidence: 99%

The Implication of Fiscal Principles and Rules on Promoting Sustainable Public Finances in the EU Countries

et al. 2020

View full text Add to dashboard Cite

show abstract

“…By adopting different specifications, Yang et al (2015) found that the effect of GDP growth rate on the probability of a fiscal consolidation is either insignificant or negative and significant. In addition, the lagged budget deficit is a commonly used variable to measure the need for consolidation (Molnár, 2012). Fiscal conditions prevailing just prior to the onset of a consolidation episode may have an impact on the size of subsequent efforts (Guichard et al, 2007).…”

Section: Control Variablesmentioning

confidence: 99%

Political stability and fiscal consolidation in sub‐Saharan African countries

Yabre

Semedo

2021

World Economy

View full text Add to dashboard Cite

Fiscal policy decision‐making in sub‐Saharan African countries has not always been understood, and the existing literature has generally emphasised the role of macroeconomic factors to justify government fiscal performances. This study highlights the essential role of political stability in the fiscal consolidation decision‐making process in sub‐Saharan African countries. We perform a panel logit model for twenty‐seven (27) sub‐Saharan African countries for the period 2000–15. We show that government stability increases the likelihood of fiscal consolidation as measured by the improvement in the cyclically adjusted primary balance (CAPB). This finding shows that governments that face less risk of being overthrown and enjoy institutional support from the political arena are more prone to fiscal consolidation. This result is obtained by examining different aspects of political stability, including government cohesion, popular support, legislative strength, margin of majority and legislative fractionalisation. Moreover, disaggregating fiscal policy into spending and revenue‐based strategies allows us to show that spending‐based consolidation tends to be more significantly associated with government stability than revenue‐based consolidation. Our findings are supported by various robustness checks and contribute to the ongoing efforts in sub‐Saharan countries to enhance sound fiscal policy.

show abstract

“…On the last part of the literature review, we focus on studies that revealed the definition of a suitable management fiscal consolidation with the dynamics in the level of budgetary balance. Molnár (2012) determined the threshold for the fiscal consolidation considering four stages depending on the impact and of variation on budgetary balance per gdp ratio: a very small impact or a continuous improvement, a medium-size impact when 1 percent decrease in a single year or in two years with a minimum of 0.5 percent point in the first year and a large size impact when 1.5 percent decrease in a single year or in two years with a minimum of 1.25 percent points in each and large 2 impact when 1.5 percent point fall in a single year or in three years with less than a 0.5 percentage point deterioration in any year and considering a very large when 2 percent decrease in a single year or in 2 years with a minimum of 1.5 percentage points in each. Ahrend et.…”

Section: Literature Reviewmentioning

confidence: 99%

Fiscal management on revenue-based or expenditure-based adjustments: an empirical evidence from EU-Countries

Bâzgan

2019

Management &Amp; Marketing. Challenges for the Knowledge Society

View full text Add to dashboard Cite

An objective for each developed state remains the improvement of a suitable fiscal management system that could generate an increased level of resources. Further on, planning, distributing, allocating those resources to the proper beneficiaries, could generate an economic stabilization, suitable economic growth, decreased level of the net lending variable. The study consisted in an empirical research throughout it was developed the analysis of the impact of fiscal strategies and public expenses adjustments on economic growth and budgetary balance. Time series data from 1998 to 2018 were used on the empirical evidence over the European countries. The study developed an econometric model represented by an unbalanced panel data analysis having as independent variables: the variance of direct taxes, the dynamics of indirect taxes, the variance of budgetary balance, the variance of tax burden, the dynamics of change in net lending as percent of gross domestic product. The dependent variable was revealed throughout the variance of gross domestic product per capita. Over 588 time series observations and 28 cross-section data were taken into consideration in order to reveal if either revenue-adjustments or public-spending adjustments had a greater influence on the evolution of economic growth over the EU-Countries. The result of the econometric model exposed a positive correlation between total expenditure, budgetary balance and economic growth and a negative correlation between direct taxes, indirect taxes, tax burden and economic growth. Moreover, by generating dummy variables on the fixed effect model, it was revealed that large fiscal improvements had a less positive effect on the development of economic growth than fiscal adjustments based on medium-size consolidation.

show abstract

Fiscal consolidation

Cited by 29 publications

References 0 publications

The Implication of Fiscal Principles and Rules on Promoting Sustainable Public Finances in the EU Countries

The Implication of Fiscal Principles and Rules on Promoting Sustainable Public Finances in the EU Countries

Political stability and fiscal consolidation in sub‐Saharan African countries

Fiscal management on revenue-based or expenditure-based adjustments: an empirical evidence from EU-Countries

Contact Info

Product

Resources

About