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How Governments Retrench In Crisis: The Case of Ireland

Author

Listed:
  • Niamh Hardiman

    (UCD Geary Institute, School of Politics and International Relations, University College Dublin)

  • Muiris MacCarthaigh

    (School of Politics, International Studies and Philosophy, Queens University Belfast)

Abstract

The Irish experience of fiscal retrenchment under crisis conditions poses new questions of governance, the evolving answers to which are likely to involve importance changes in the state’s organizational profile and in its policy competences. The government is required to formulate and implement extremely tough choices, particularly since Ireland entered an EU-IMF loan programme in November 2010. Yet government does retain some policy discretion in the priorities it adopts in the composition of budget adjustment and in the distributive impact of cuts. This paper sets out to explore where the adjustments have been made through examination both of the composition of budgets and of the organizational configuration of state institutions, and it analyses how these outcomes can be accounted for. The paper draws upon a new official database setting out a detailed compositional analysis of Irish public spending between 2008 and 2012, and upon the Irish State Administration Database (http://isad.ie) through which the organizational aspects of the state's policy capacity can be analysed.

Suggested Citation

  • Niamh Hardiman & Muiris MacCarthaigh, 2013. "How Governments Retrench In Crisis: The Case of Ireland," Working Papers 201315, Geary Institute, University College Dublin.
  • Handle: RePEc:ucd:wpaper:201315
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    File URL: http://www.ucd.ie/geary/static/publications/workingpapers/gearywp201315.pdf
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    References listed on IDEAS

    as
    1. Roberto Perotti, 2012. "The "Austerity Myth": Gain without Pain?," NBER Chapters,in: Fiscal Policy after the Financial Crisis, pages 307-354 National Bureau of Economic Research, Inc.
    2. Sebastian Dellepiane & Niamh Hardiman, 2012. "The New Politics of Austerity: Fiscal Responses to the Economic Crisis in Ireland and Spain," Working Papers 201207, Geary Institute, University College Dublin.
    3. Callan,Tim & Keane,Claire & Savage,Michael & Walsh,John R., 2012. "Distributional Impact of Tax, Welfare and Public Sector Pay Policies: 2009-2012," Quarterly Economic Commentary: Special Articles, Economic and Social Research Institute (ESRI), vol. 2012(4-Winter ).
    4. Niamh Hardiman, 2006. "Politics and Social Partnership - Flexible Network Governance," The Economic and Social Review, Economic and Social Studies, vol. 37(3), pages 343-374.
    5. Martin Larch & Alessandro Turrini, 2011. "Received Wisdom And Beyond: Lessons From Fiscal Consolidation In The Eu," National Institute Economic Review, National Institute of Economic and Social Research, vol. 217(1), pages 1-18, July.
    6. Kenneth Benoit & Michael Laver, 2005. "Mapping the Irish Policy Space - Voter and Party Spaces in Preferential Elections," The Economic and Social Review, Economic and Social Studies, vol. 36(2), pages 83-108.
    7. Fabian Valencia & Luc Laeven, 2012. "Systemic Banking Crises Database; An Update," IMF Working Papers 12/163, International Monetary Fund.
    8. Kelly, Eilish & McGuinness, Seamus & O'Connell, Philip, 2009. "Benchmarking, Social Partnership and Higher Remuneration: Wage Settling Institutions and the Public-Private Sector Wage Gap in Ireland," The Economic and Social Review, Economic and Social Studies, vol. 40(3), pages 339-370.
    9. Alberto Alesina & Roberto Perotti, 1995. "The Political Economy of Budget Deficits," IMF Staff Papers, Palgrave Macmillan, vol. 42(1), pages 1-31, March.
    10. Niamh Hardiman & Muiris MacCarthaigh, 2010. "Organising for Growth: Irish State Administration 1958-2008," The Economic and Social Review, Economic and Social Studies, vol. 41(3), pages 367-393.
    11. Roberto Perotti, 2011. "The "Austerity myth": Gain Without Pain?," BIS Working Papers 362, Bank for International Settlements.
    12. Perotti, Roberto, 1998. " The Political Economy of Fiscal Consolidations," Scandinavian Journal of Economics, Wiley Blackwell, vol. 100(1), pages 367-394, March.
    13. Sebastian Dellepiane & Niamh Hardiman, 2011. "Governing the Irish Economy: A Triple Crisis," Working Papers 201103, Geary Institute, University College Dublin.
    14. Roberto Perotti, 2011. "The "Austerity Myth": Gain without Pain?," Working Papers 430, IGIER (Innocenzo Gasparini Institute for Economic Research), Bocconi University.
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    Cited by:

    1. Michelle Norris & Michael Byrne, 2016. "Social housing's role in the Irish property boom and bust," Working Papers 201615, Geary Institute, University College Dublin.
    2. Michelle Norris & Michael Byrne, 2017. "Housing Market Volatility,Stability and Social Rented Housing: comparing Austria and Ireland during the global financial crisis," Working Papers 201705, Geary Institute, University College Dublin.
    3. repec:taf:houspd:v:28:y:2018:i:1:p:50-63 is not listed on IDEAS

    More about this item

    Keywords

    Ireland; Retrenchment; Public Administration; fiscal politics; economic crisis;

    JEL classification:

    • E62 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - Fiscal Policy
    • H40 - Public Economics - - Publicly Provided Goods - - - General
    • H61 - Public Economics - - National Budget, Deficit, and Debt - - - Budget; Budget Systems
    • H83 - Public Economics - - Miscellaneous Issues - - - Public Administration

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