A New Action-Based Dataset of Fiscal Consolidation
IMF Working Papers, June 1, 2011
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- A New Action-Based Dataset of Fiscal Consolidation
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Bibliographic details
- Authors: Andrea Pescatori, Daniel Leigh, Jaime Guajardo, Pete Devries
- Published: June 1, 2011
- Series: IMF Working Papers
- DOI: https://doi.org/10.5089/9781455264407.001
Summary
- Presents a new dataset of fiscal consolidation for 17 OECD economies during 1978-2009.
- Focuses on discretionary changes in taxes and government spending primarily motivated by a desire to reduce the budget deficit and not by a response to prospective economic conditions.
- Examines contemporaneous policy documents to identify motivation and budgetary impact of fiscal policy changes, including Budgets, Budget Speeches, central bank reports, Convergence and Stability Programs submitted by the authorities to the European Commission, and IMF and OECD reports.
- Resulting series can be used to estimate the macroeconomic effects of fiscal consolidation.
Dataset construction and methodology
- Coverage: 17 OECD economies.
- Time span: 1978-2009.
- Identification criteria: discretionary fiscal actions aimed at deficit reduction (tax and spending changes) rather than responses to prospective economic conditions.
- Source materials reviewed: Budgets, Budget Speeches, central bank reports, Convergence and Stability Programs (submitted to the European Commission), IMF reports, OECD reports.
- Output: an action-based series that captures the motivation and budgetary impact of identified fiscal policy changes.
Intended uses and analytical applications
- The series can be used to estimate the macroeconomic effects of fiscal consolidation.
- Relevant topics for analysis include: fiscal consolidation, fiscal policy, budget deficit reduction, government expenditure and taxation measures.
Subjects and keywords
- Subjects: Asset and liability management; Budget planning and preparation; Debt reduction; Expenditure; Fiscal consolidation; Fiscal policy; Government debt management; Public financial management (PFM).
- Keywords: budget deficit; Budget planning and preparation; coalition government; Debt reduction; debt service; deficit reduction; Fiscal consolidation; Fiscal policy; fiscal year; Global; Government debt management; government expenditure; income tax; introduced tax hikes; public finance; tax measure; tax side; taxation; WP.