Asset Booms and Structural Fiscal Positions : The Case of Ireland

Author/Editor:

Daniel S Kanda

Publication Date:

March 1, 2010

Electronic Access:

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Disclaimer: This Working Paper should not be reported as representing the views of the IMF.The views expressed in this Working Paper are those of the author(s) and do not necessarily represent those of the IMF or IMF policy. Working Papers describe research in progress by the author(s) and are published to elicit comments and to further debate

Summary:

Asset booms and sectoral changes can distort traditional estimates of structural fiscal revenue, and could lead to serious fiscal policy errors. This paper extends the estimation of structural revenues to take account of asset prices and sectoral changes, and applies this to the case of Ireland, where a property bust has revealed a large hole in the public finances. It is shown that excluding these factors led to a substantial bias in the estimation of structural revenues, and the structural balance prior to the crisis was much larger than earlier estimated.

Series:

Working Paper No. 10/57

Subject:

English

Publication Date:

March 1, 2010

ISBN/ISSN:

9781451963687/1018-5941

Stock No:

WPIEA2010057

Price:

$18.00 (Academic Rate:$18.00)

Format:

Paper

Pages:

23

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