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A New Action-Based Dataset of Fiscal Consolidation

Author

Listed:
  • Mr. Andrea Pescatori
  • Mr. Daniel Leigh
  • Mr. Jaime Guajardo
  • Mr. Pete Devries

Abstract

This paper presents a new dataset of fiscal consolidation for 17 OECD economies during 1978-2009. We focus on discretionary changes in taxes and government spending primarily motivated by a desire to reduce the budget deficit and not by a response to prospective economic conditions. To identify the motivation and budgetary impact of the fiscal policy changes, we examine contemporaneous policy documents, including Budgets, Budget Speeches, central bank reports, Convergence and Stability Programs submitted by the authorities to the European Commission, and IMF and OECD reports. The resulting series can be used to estimate the macroeconomic effects of fiscal consolidation.

Suggested Citation

  • Mr. Andrea Pescatori & Mr. Daniel Leigh & Mr. Jaime Guajardo & Mr. Pete Devries, 2011. "A New Action-Based Dataset of Fiscal Consolidation," IMF Working Papers 2011/128, International Monetary Fund.
    • Handle: RePEc:imf:imfwpa:2011/128
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    References listed on IDEAS

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    1. Christina D. Romer & David H. Romer, 2010. "The Macroeconomic Effects of Tax Changes: Estimates Based on a New Measure of Fiscal Shocks," American Economic Review, American Economic Association, vol. 100(3), pages 763-801, June.
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    3. Working Group of the Economic and Financial Committee, 2000. "Report on financial stability," European Economy - Economic Papers 2008 - 2015 143, Directorate General Economic and Financial Affairs (DG ECFIN), European Commission.
    4. Wolswijk, Guido, 2007. "Short- and long-run tax elasticities: the case of the Netherlands," Working Paper Series 763, European Central Bank.
    5. Ramey, Valerie A. & Shapiro, Matthew D., 1998. "Costly capital reallocation and the effects of government spending," Carnegie-Rochester Conference Series on Public Policy, Elsevier, vol. 48(1), pages 145-194, June.
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