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Expenditure Reform in Industrialised Countries: A Case-Study Approach

Author

Listed:
  • Sebastian Hauptmeier
  • Martin Heipertz
  • Ludger Schuknecht

Abstract

This study examines reforms of public expenditure in industrialised countries over the past two decades. We distinguish ambitious and timid reformers and analyse in detail reform experiences in eight case studies of ambitious reform episodes. We find that ambitious reform countries reduce spending on transfers, subsidies and public consumption. Such expenditure retrenchment is also typically part of a comprehensive reform package that includes improvements in fiscal institutions as well as structural and other macroeconomic reforms. The study finds that ambitious expenditure retrenchment and reform coincides with large improvements in fiscal and economic growth indicators. Copyright 2007 Institute for Fiscal Studies.

Suggested Citation

  • 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.
    • Handle: RePEc:ifs:fistud:v:28:y:2007:i:3:p:293-342
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    JEL classification:

    • O57 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Comparative Studies of Countries
    • H6 - Public Economics - - National Budget, Deficit, and Debt
    • H5 - Public Economics - - National Government Expenditures and Related Policies

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