IDEAS home Printed from https://ideas.repec.org/a/wfo/wquart/y2010i2p198-210.html
   My bibliography  Save this article

An International Comparison of Success Factors for Budget Consolidation Strategies

Author

Listed:
  • Hans Pitlik
  • Norbert Gruber

    (WIFO)

  • Ewald Walterskirchen

    (WIFO)

Abstract

In numerous countries the global financial and economic crisis has entailed a surge of government debt, which will call for enhanced consolidation efforts in the future. In the past consolidation strategies focusing primarily on spending cuts proved sustainable, whereas mostly revenue-based strategies were less successful. A suitable institutional framework, e.g., budgetary expenditure ceilings, also contributes to a lasting fiscal consolidation. The short-term growth effects of budget balancing efforts are more disputed. Besides contractionary ("Keynesian") effects empirical studies also find expanisionary ("non-Keynesian") effects of ambitious consolidation programmes under certain conditions.

Suggested Citation

  • Hans Pitlik & Norbert Gruber & Ewald Walterskirchen, 2010. "An International Comparison of Success Factors for Budget Consolidation Strategies," Austrian Economic Quarterly, WIFO, vol. 15(2), pages 198-210, July.
    • Handle: RePEc:wfo:wquart:y:2010:i:2:p:198-210
    as

    Download full text from publisher

    File URL: https://www.wifo.ac.at/wwa/pubid/40180
    File Function: abstract
    Download Restriction: Payment required
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. von Hagen, Jurgen & Hughes Hallett, Andrew & Strauch, Rolf, 2002. "Budgetary Consolidation in Europe: Quality, Economic Conditions, and Persistence," Journal of the Japanese and International Economies, Elsevier, vol. 16(4), pages 512-535, December.
    2. Markus Marterbauer & Ewald Walterskirchen, 1999. "Gesamtwirtschaftliche Auswirkungen der Konsolidierungspolitik in der EU," WIFO Studies, WIFO, number 2869, February.
    3. Alois Guger & Silvia Rocha-Akis, 2016. "Umverteilung durch den Staat in Österreich," WIFO Monatsberichte (monthly reports), WIFO, vol. 89(5), pages 329-345, May.
    4. C. John McDermott & Robert F. Wescott, 1996. "An Empirical Analysis of Fiscal Adjustments," IMF Staff Papers, Palgrave Macmillan, vol. 43(4), pages 725-753, December.
    5. Roberto Perotti, 1999. "Fiscal Policy in Good Times and Bad," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 114(4), pages 1399-1436.
    6. Andrea Zaghini, 1999. "The economyc policy of fiscal consolidations: The european experience," Temi di discussione (Economic working papers) 355, Bank of Italy, Economic Research and International Relations Area.
    7. Heylen, Freddy & Everaert, Gerdie, 2000. "Success and Failure of Fiscal Consolidation in the OECD: A Multivariate Analysis," Public Choice, Springer, vol. 105(1-2), pages 103-124, October.
    8. Sebastian Hauptmeier & Martin Heipertz & Ludger Schuknecht, 2007. "Expenditure Reform in Industrialised Countries: A Case-Study Approach," Fiscal Studies, Institute for Fiscal Studies, vol. 28(3), pages 293-342, September.
    9. von Hagen, Jurgen & Strauch, Rolf R, 2001. "Fiscal Consolidations: Quality, Economic Conditions, and Success," Public Choice, Springer, vol. 109(3-4), pages 327-346, December.
    10. Stéphanie Guichard & Mike Kennedy & Eckhard Wurzel & Christophe André, 2007. "What Promotes Fiscal Consolidation: OECD Country Experiences," OECD Economics Department Working Papers 553, OECD Publishing.
    11. Gunther Tichy, 2009. "Einige unkonventionelle Gedanken zum Leben nach der Krise," Wirtschaft und Gesellschaft - WuG, Kammer für Arbeiter und Angestellte für Wien, Abteilung Wirtschaftswissenschaft und Statistik, vol. 35(4), pages 501-513.
    12. Stephan Schulmeister, 1995. "Zinssatz, Wachstumsrate und Staatsverschuldung," WIFO Monatsberichte (monthly reports), WIFO, vol. 68(3), pages 165-180, March.
    13. Ms. Hélène Poirson & Mr. Luca A Ricci & Ms. Catherine A Pattillo, 2004. "What Are the Channels Through Which External Debt Affects Growth?," IMF Working Papers 2004/015, International Monetary Fund.
    14. Gabriele Giudice & Alessandro Turrini & Jan in 't Veld, 2003. "Can fiscal consolidations be expansionary in the EU? Ex-post evidence and ex-ante analysis," European Economy - Economic Papers 2008 - 2015 195, Directorate General Economic and Financial Affairs (DG ECFIN), European Commission.
    15. Ewald Walterskirchen, 1987. "Budgetsanierung in einigen westeuropäischen Ländern," WIFO Monatsberichte (monthly reports), WIFO, vol. 60(7), pages 454-463, July.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Hans Pitlik & Norbert Gruber & Ewald Walterskirchen, 2010. "Erfolgsfaktoren von Budgetkonsolidierungsstrategien im internationalen Vergleich," WIFO Monatsberichte (monthly reports), WIFO, vol. 83(3), pages 233-245, March.
    2. Agnello, Luca & Castro, Vitor & Sousa, Ricardo M., 2013. "What determines the duration of a fiscal consolidation program?," Journal of International Money and Finance, Elsevier, vol. 37(C), pages 113-134.
    3. Kleis, Mischa & Moessinger, Marc-Daniel, 2016. "The long-run effect of fiscal consolidation on economic growth: Evidence from quantitative case studies," ZEW Discussion Papers 16-047, ZEW - Leibniz Centre for European Economic Research, revised 2016.
    4. F. Heylen & A. Hoebeeck & T. Buyse, 2011. "Fiscal consolidation, institutions and institutional reform: a multivariate analysis of public debt dynamics," Working Papers of Faculty of Economics and Business Administration, Ghent University, Belgium 11/763, Ghent University, Faculty of Economics and Business Administration.
    5. Charles Amo Yartey & Mr. Machiko Narita & Mr. Shelton M Nicholls & Mr. Joel Chiedu Okwuokei, 2012. "The Challenges of Fiscal Consolidation and Debt Reduction in the Caribbean," IMF Working Papers 2012/276, International Monetary Fund.
    6. Mr. Benedict J. Clements & Mr. Sanjeev Gupta & Mr. Erwin H Tiongson & Mr. Emanuele Baldacci, 2003. "What Sustains Fiscal Consolidations in Emerging Market Countries?," IMF Working Papers 2003/224, International Monetary Fund.
    7. Piotr Ciżkowicz & Grzegorz Parosa & Andrzej Rzońca, 2022. "Fiscal tensions and risk premium," Empirica, Springer;Austrian Institute for Economic Research;Austrian Economic Association, vol. 49(3), pages 833-896, August.
    8. Vitor Castro, 2016. "On the behaviour of the functional components ofgovernment expenditures during fiscal consolidations," NIPE Working Papers 11/2016, NIPE - Universidade do Minho.
    9. Castro, Vítor, 2017. "The impact of fiscal consolidations on the functional components of government expenditures," Economic Modelling, Elsevier, vol. 60(C), pages 138-150.
    10. Sèna Kimm Gnangnon, 2011. "The consequences of Fiscal Episodes in OECD Countries for Aid Supply," Working Papers halshs-00613161, HAL.
    11. Heylen, Freddy & Hoebeeck, Annelies & Buyse, Tim, 2013. "Government efficiency, institutions, and the effects of fiscal consolidation on public debt," European Journal of Political Economy, Elsevier, vol. 31(C), pages 40-59.
    12. Yang, Weonho & Fidrmuc, Jan & Ghosh, Sugata, 2015. "Macroeconomic effects of fiscal adjustment: A tale of two approaches," Journal of International Money and Finance, Elsevier, vol. 57(C), pages 31-60.
    13. Sena Kimm GNANGNON, 2011. "The consequences of Fiscal Episodes in OECD Countries for Aid Supply," Working Papers 201122, CERDI.
    14. Maria Gabriella Briotti, 2005. "Economic reactions to public finance consolidation - a survey of the literature," Occasional Paper Series 38, European Central Bank.
    15. Paweł Borys & Piotr Ciżkowicz & Andrzej Rzońca, 2014. "Panel Data Evidence on the Effects of Fiscal Policy Shocks in the EU New Member States," Fiscal Studies, Institute for Fiscal Studies, vol. 35, pages 189-224, June.
    16. Ant�nio Afonso, 2010. "Expansionary fiscal consolidations in Europe: new evidence," Applied Economics Letters, Taylor & Francis Journals, vol. 17(2), pages 105-109, January.
    17. António Afonso, 2001. "Non-Keynesian Effects of Fiscal Policy in the EU-15," Working Papers Department of Economics 2001/07, ISEG - Lisbon School of Economics and Management, Department of Economics, Universidade de Lisboa.
    18. Gnangnon, Sena Kimm, 2013. "The consequences of fiscal episodes in OECD DAC countries for aid supply," The Quarterly Review of Economics and Finance, Elsevier, vol. 53(3), pages 302-313.
    19. António Afonso, 2007. "Expansionary fiscal consolidations in Europe: part of conventional wisdom?," Money Macro and Finance (MMF) Research Group Conference 2006 50, Money Macro and Finance Research Group.
    20. António Afonso, 2007. "An Avenue for Expansionary Fiscal Contractions," The IUP Journal of Public Finance, IUP Publications, vol. 0(3), pages 7-15, August.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:wfo:wquart:y:2010:i:2:p:198-210. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Florian Mayr (email available below). General contact details of provider: https://edirc.repec.org/data/wifooat.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.