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Fiscal Reform and Fiscal Sustainability: Evidence from Australia and Sweden

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  • Tomomi Miyazaki

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    (Graduate School of Economics, Kobe University)

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    Abstract

    This paper examines how the adoption of a fiscal rule affects the sustainability of fiscal policy in two OECD countries; Australia and Sweden. While recent fiscal reforms undertaken in both these countries are useful for ensuring the sustainability of government budgets, there are a few differences. In Australia, we show that government revenues are not necessarily growing at a faster rate than government expenditures, at least from the viewpoint of a statistical long-run relationship. In contrast, in Sweden, we show the reform is more beneficial for the attainment of a budget surplus.

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    File URL: http://www.econ.kobe-u.ac.jp/RePEc/koe/wpaper/2014/1407.pdf
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    Bibliographic Info

    Paper provided by Graduate School of Economics, Kobe University in its series Discussion Papers with number 1407.

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    Length: 27pages
    Date of creation: Feb 2014
    Date of revision:
    Handle: RePEc:koe:wpaper:1407

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    Web page: http://www.econ.kobe-u.ac.jp
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    Keywords: Fiscal reform; Sustainability of fiscal policy; Expenditure ceilings; Dynamic OLS;

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