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Fiscal reform and fiscal sustainability: Evidence from Australia and Sweden

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  • Miyazaki, Tomomi

Abstract

This paper examines how the adoption of a fiscal rule affects the sustainability of fiscal policy in two OECD countries; Australia and Sweden. 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 that the reform is more beneficial for the attainment of a budget surplus.

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  • Miyazaki, Tomomi, 2014. "Fiscal reform and fiscal sustainability: Evidence from Australia and Sweden," International Review of Economics & Finance, Elsevier, vol. 33(C), pages 141-151.
  • Handle: RePEc:eee:reveco:v:33:y:2014:i:c:p:141-151
    DOI: 10.1016/j.iref.2014.04.002
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    Cited by:

    1. Matt Andrews & Lant Pritchett & Michael Woolcock, 2015. "Doing Problem Driven Work," CID Working Papers 307, Center for International Development at Harvard University.
    2. repec:eee:poleco:v:51:y:2018:i:c:p:69-92 is not listed on IDEAS
    3. Heinemann, Friedrich & Moessinger, Marc-Daniel & Yeter, Mustafa, 2018. "Do fiscal rules constrain fiscal policy? A meta-regression-analysis," European Journal of Political Economy, Elsevier, vol. 51(C), pages 69-92.
    4. Tomomi Miyazaki & Kazuki Onji, 2017. "The Sustainability of Japan's Government Debt: A Review," Discussion Papers 1716, Graduate School of Economics, Kobe University.
    5. Lennart Erixon, 2015. "Can fiscal austerity be expansionary in present-day Europe? The lessons from Sweden," Review of Keynesian Economics, Edward Elgar Publishing, vol. 3(4), pages 567—601-5, October.
    6. Andrews, Matt, 2015. "Has Sweden Injected Realism into Public Financial Management Reforms in Partner Countries?," Working Paper Series 15-063, Harvard University, John F. Kennedy School of Government.

    More about this item

    Keywords

    Fiscal reform; Expenditure ceilings; Dynamic OLS;

    JEL classification:

    • E62 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - Fiscal Policy
    • H61 - Public Economics - - National Budget, Deficit, and Debt - - - Budget; Budget Systems
    • H62 - Public Economics - - National Budget, Deficit, and Debt - - - Deficit; Surplus

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