Local Governmentsâ€™ Fiscal Balance, Privatization, and Banking Sector Reform in Transition Countries
Several transition economies have undertaken fiscal decentralization reforms over the past two decades along with liberalization, privatization, and stabilization reforms. Theory predicts that decentralization may aggravate fiscal imbalances, unless the right incentives are in place to promote fiscal discipline. This paper uses a panel of 20 transition countries over 19 years to address a central question of fact: Did privatization help to promote local governmentsâ€™ fiscal discipline? The answer is clearly â€˜noâ€™ for privatization considered in isolation. However, privatization and subnational fiscal autonomy along with reforms to the banking system - restraining access to soft financing - may prove effective at improving fiscal balances among local governments.
|Date of creation:||01 Jun 2012|
|Date of revision:|
|Contact details of provider:|| Postal: |
Phone: (202) 623-7000
Fax: (202) 623-4661
Web page: http://www.imf.org/external/pubind.htm
More information through EDIRC
|Order Information:||Web: http://www.imf.org/external/pubs/pubs/ord_info.htm|
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Blundell, Richard & Bond, Stephen, 1998.
"Initial conditions and moment restrictions in dynamic panel data models,"
Journal of Econometrics,
Elsevier, vol. 87(1), pages 115-143, August.
- Blundell, R. & Bond, S., 1995. "Initial Conditions and Moment Restrictions in Dynamic Panel Data Models," Economics Papers 104, Economics Group, Nuffield College, University of Oxford.
- Richard Blundell & Steve Bond, 1995. "Initial conditions and moment restrictions in dynamic panel data models," IFS Working Papers W95/17, Institute for Fiscal Studies.
- R Blundell & Steven Bond, . "Initial conditions and moment restrictions in dynamic panel data model," Economics Papers W14&104., Economics Group, Nuffield College, University of Oxford.
- Jean-Paul Bodin & William Joseph Crandall, 2005. "Revenue Administration Reform in Middle Eastern Countries, 1994-2004," IMF Working Papers 05/203, International Monetary Fund.
- Saul Estrin & Jan Hanousek & Evzen Kocenda & Jan Svejnar, 2009.
"The Effects of Privatization and Ownership in Transition Economies,"
Journal of Economic Literature,
American Economic Association, vol. 47(3), pages 699-728, September.
- Estrin, Saul & Hanousek, Jan & Kocenda, Evzen & Svejnar, Jan, 2009. "Effects of privatization and ownership in transition economies," Policy Research Working Paper Series 4811, The World Bank.
- Crivelli, Ernesto, 2013. "Fiscal impact of privatization revisited: The role of tax revenues in transition economies," Economic Systems, Elsevier, vol. 37(2), pages 217-232.
- Crivelli, Ernesto & Staal, Klaas, 2006.
"Size and soft budget constraints,"
Discussion Paper Series of SFB/TR 15 Governance and the Efficiency of Economic Systems
172, Free University of Berlin, Humboldt University of Berlin, University of Bonn, University of Mannheim, University of Munich.
- Ernesto Crivelli & Klaas Staal, 2006. "Size and Soft Budget Constraints," CESifo Working Paper Series 1858, CESifo Group Munich.
- Ernesto Crivelli & Klaas Staal, 2006. "Size and Soft Budget Constraints," Working Papers 2006-13, University of Kentucky, Institute for Federalism and Intergovernmental Relations.
- Mariano Tommasi & Pablo Sanguinetti, 2003.
"Intergovernmental Transfers and Fiscal Behavior: Insurance versus Aggregate Discipline,"
60, Universidad de San Andres, Departamento de Economia, revised Aug 2003.
- Sanguinetti, Pablo & Tommasi, Mariano, 2004. "Intergovernmental transfers and fiscal behavior insurance versus aggregate discipline," Journal of International Economics, Elsevier, vol. 62(1), pages 149-170, January.
- Eoin F. McGuirk & Eoin F. McGuirk, 2010.
"The Illusory Leader: Natural Resources, Taxation and Accountability,"
The Institute for International Integration Studies Discussion Paper Series
- Eoin McGuirk, 2013. "The illusory leader: natural resources, taxation and accountability," Public Choice, Springer, vol. 154(3), pages 285-313, March.
- Rolando Ossowski & Alberto Gonzáles-Castillo, 2012. "Manna from Heaven: The Impact of Nonrenewable Resource Revenues on Other Revenues of Resource Exporters in Latin America and the Caribbean," IDB Publications (Working Papers) 75558, Inter-American Development Bank.
- Sachs, J-D & Warner, A-M, 1995.
"Natural Resource Abundance and Economic Growth,"
517a, Harvard - Institute for International Development.
- repec:idb:brikps:publication-detail,7101.html?id=54846 is not listed on IDEAS
- World Bank, 2011. "The Changing Wealth of Nations : Measuring Sustainable Development in the New Millennium," World Bank Publications, The World Bank, number 2252.
- Michael Keen & Mario Mansour, 2010. "Revenue Mobilisation in Sub-Saharan Africa: Challenges from Globalisation I - Trade Reform," Development Policy Review, Overseas Development Institute, vol. 28(5), pages 553-571, 09.
- David Roodman, 2006.
"How to Do xtabond2: An Introduction to "Difference" and "System" GMM in Stata,"
103, Center for Global Development.
- David Roodman, 2009. "How to do xtabond2: An introduction to difference and system GMM in Stata," Stata Journal, StataCorp LP, vol. 9(1), pages 86-136, March.
- Dani Rodrik, 1998.
"Why Do More Open Economies Have Bigger Governments?,"
Journal of Political Economy,
University of Chicago Press, vol. 106(5), pages 997-1032, October.
- Dani Rodrik, 1996. "Why Do More Open Economies Have Bigger Governments?," NBER Working Papers 5537, National Bureau of Economic Research, Inc.
- Rodrik, Dani, 1996. "Why do More Open Economies Have Bigger Governments?," CEPR Discussion Papers 1388, C.E.P.R. Discussion Papers.
- Michael Keen & Alexander Klemm & Victoria Perry, 2010. "Tax and the Crisis," Fiscal Studies, Institute for Fiscal Studies, vol. 31(1), pages 43-79, 03.
- Michael Keen & Mario Mansour, 2010. "Revenue Mobilisation in Sub-Saharan Africa: Challenges from Globalisation II - Corporate Taxation," Development Policy Review, Overseas Development Institute, vol. 28(5), pages 573-596, 09.
- Knack, Stephen, 2009. "Sovereign rents and quality of tax policy and administration," Journal of Comparative Economics, Elsevier, vol. 37(3), pages 359-371, September.
- Afonso, António & Agnello, Luca & Furceri, Davide, 2008.
"Fiscal policy responsiveness, persistence and discretion,"
Working Paper Series
0954, European Central Bank.
- António Afonso & Luca Agnello & Davide Furceri, 2010. "Fiscal policy responsiveness, persistence, and discretion," Public Choice, Springer, vol. 145(3), pages 503-530, December.
- António Afonso & Luca Agnello & Davide Furceri, 2008. "Fiscal Policy Responsiveness, Persistence, and Discretion," OECD Economics Department Working Papers 659, OECD Publishing.
- António Afonso & Luca Agnello & Davide Furceri, 2008. "Fiscal Policy Responiveness, Persistence and Discretion," Working Papers Department of Economics 2008/50, ISEG - School of Economics and Management, Department of Economics, University of Lisbon.
- Dominik H. Enste & Friedrich Schneider, 2000. "Shadow Economies: Size, Causes, and Consequences," Journal of Economic Literature, American Economic Association, vol. 38(1), pages 77-114, March.
- Dora Benedek & Ernesto Crivelli & Sanjeev Gupta & Priscilla Muthoora, 2014.
"Foreign Aid and Revenue: Still a Crowding-Out Effect?,"
FinanzArchiv: Public Finance Analysis,
Mohr Siebeck, Tübingen, vol. 70(1), pages 67-96, March.
- Ernesto Crivelli & Sanjeev Gupta & Priscilla S. Muthoora & Dora Benedek, 2012. "Foreign Aid and Revenue; Still a Crowding Out Effect?," IMF Working Papers 12/186, International Monetary Fund.
- David Roodman, 2009.
"A Note on the Theme of Too Many Instruments,"
Oxford Bulletin of Economics and Statistics,
Department of Economics, University of Oxford, vol. 71(1), pages 135-158, 02.
- Baunsgaard, Thomas & Keen, Michael, 2010.
"Tax revenue and (or?) trade liberalization,"
Journal of Public Economics,
Elsevier, vol. 94(9-10), pages 563-577, October.
- Alexander James, 2014.
"US State Fiscal Policy and Natural Resources,"
OxCarre Working Papers
126, Oxford Centre for the Analysis of Resource Rich Economies, University of Oxford.
- Alexander G. James, 2014. "U.S. State Fiscal Policy and Natural Resources," Working Papers 2014-02, University of Alaska Anchorage, Department of Economics.
- Alexander James, 2013. "US State Fiscal Policy and Natural Resources," Economics Series Working Papers OxCarre Research Paper 12, University of Oxford, Department of Economics.
- repec:bil:bilpap:1101 is not listed on IDEAS
- Brunnschweiler, Christa N., 2008.
"Cursing the Blessings? Natural Resource Abundance, Institutions, and Economic Growth,"
Elsevier, vol. 36(3), pages 399-419, March.
- Christa N. Brunnschweiler, 2006. "Cursing the blessings? Natural resource abundance, institutions, and economic growth," CER-ETH Economics working paper series 06/51, CER-ETH - Center of Economic Research (CER-ETH) at ETH Zurich.
- Carlos Leite & Jens Weidmann, 1999. "Does Mother Nature Corrupt; Natural Resources, Corruption, and Economic Growth," IMF Working Papers 99/85, International Monetary Fund.
- Céline Bignebat & Fabian Gouret, 2008. "Determinants and consequences of soft budget constraints," The Economics of Transition, The European Bank for Reconstruction and Development, vol. 16(3), pages 503-535, 07.
- Douglas Sutherland & Robert W.R. Price & Isabelle Joumard, 2005. "Fiscal Rules for Sub-central Governments: Design and Impact," OECD Economics Department Working Papers 465, OECD Publishing.
- J. Stephen Ferris, 2013. "Fiscal policy," Chapters, in: The Elgar Companion to Public Choice, Second Edition, chapter 16, pages 260-283 Edward Elgar.
- Friedrich Schneider & Dominik Enste, 2000.
"Shadow Economies Around the World; Size, Causes, and Consequences,"
IMF Working Papers
00/26, International Monetary Fund.
- Friedrich Schneider & Dominik Enste, 1999. "Shadow Economies Around the World - Size, Causes, and Consequences," CESifo Working Paper Series 196, CESifo Group Munich.
- Collier, Paul, 2006. "Is Aid Oil? An Analysis Of Whether Africa Can Absorb More Aid," World Development, Elsevier, vol. 34(9), pages 1482-1497, September.
- J Alm & R M Buckley, 1994. "Decentralization, privatization, and the solvency of local governments in reforming economies: the case of Budapest," Environment and Planning C: Government and Policy, Pion Ltd, London, vol. 12(3), pages 333-346, June.
- Bornhorst, Fabian & Gupta, Sanjeev & Thornton, John, 2009. "Natural resource endowments and the domestic revenue effort," European Journal of Political Economy, Elsevier, vol. 25(4), pages 439-446, December.
- Graham Davis, 2011. "The resource drag," International Economics and Economic Policy, Springer, vol. 8(2), pages 155-176, June.
- Gouret, Fabian, 2007. "Privatization and output behavior during the transition: Methods matter!," Journal of Comparative Economics, Elsevier, vol. 35(1), pages 3-34, March.
- Arellano, Manuel & Bond, Stephen, 1991.
"Some Tests of Specification for Panel Data: Monte Carlo Evidence and an Application to Employment Equations,"
Review of Economic Studies,
Wiley Blackwell, vol. 58(2), pages 277-97, April.
- Tom Doan, . "RATS program to replicate Arellano-Bond 1991 dynamic panel," Statistical Software Components RTZ00169, Boston College Department of Economics.
- Christopher Heady & Åsa Johansson & Jens Arnold & Bert Brys & Laura Vartia, 2009.
"Tax Policy for Economic Recovery and Growth,"
Studies in Economics
0925, School of Economics, University of Kent.
- Nickell, Stephen J, 1981. "Biases in Dynamic Models with Fixed Effects," Econometrica, Econometric Society, vol. 49(6), pages 1417-26, November.
- Dhaneshwar Ghura, 1998. "Tax Revenue in Sub-Saharan Africa; Effects of Economic Policies and Corruption," IMF Working Papers 98/135, International Monetary Fund.
- Carola Pessino & Ricardo Fenochietto, 2010. "Determining countries’ tax effort," Hacienda Pública Española, IEF, vol. 195(4), pages 65-87, december.
When requesting a correction, please mention this item's handle: RePEc:imf:imfwpa:12/146. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Jim Beardow)or (Hassan Zaidi)
If references are entirely missing, you can add them using this form.