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The persistence of fiscal adjustments in developing countries

  • Sanjeev Gupta
  • Benedict Clements
  • Emanuele Baldacci
  • Carlos Mulas-Granados

This study assesses effects of expenditure composition and other variables on the duration of fiscal adjustment episodes in a sample of 29 developing countries. Using survival analysis, the study finds that expenditure composition, size of the fiscal consolidation, and past performance on fiscal consolidation affect the persistence of adjustment.

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Article provided by Taylor & Francis Journals in its journal Applied Economics Letters.

Volume (Year): 11 (2004)
Issue (Month): 4 ()
Pages: 209-212

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Handle: RePEc:taf:apeclt:v:11:y:2004:i:4:p:209-212
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  1. Alberto Alesina & Roberto Perotti, 1996. "Fiscal Adjustments in OECD Countries: Composition and Macroeconomic Effects," NBER Working Papers 5730, National Bureau of Economic Research, Inc.
  2. von Hagen, Jurgen & Strauch, Rolf R, 2001. " Fiscal Consolidations: Quality, Economic Conditions, and Success," Public Choice, Springer, vol. 109(3-4), pages 327-46, December.
  3. Alberto Alesina & Roberto Perotti, 1995. "Fiscal Expansions and Fiscal Adjustments in OECD Countries," NBER Working Papers 5214, National Bureau of Economic Research, Inc.
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