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Social Spending in IMF-supported Programs

Author

Listed:
  • Ricardo Martin

    (World Bank)

  • Alex Segura-Ubiergo

    (International Monetary Fund)

Abstract

This paper analyzes the impact of IMF-supported programs on health and education spending in a large time-series cross-section sample of countries. Using an ARIMA model to model time dynamics and instrumental variables to correct for the well-known endogeneity of IMF-supported programs, the paper finds, contrary to the conventional wisdom, that health and education do not decline in the presence of an IMF-supported program. However, this does not necessarily mean that the poor are protected from the costs of economic adjustment.

Suggested Citation

  • Ricardo Martin & Alex Segura-Ubiergo, 2005. "Social Spending in IMF-supported Programs," Public Economics 0504011, University Library of Munich, Germany.
  • Handle: RePEc:wpa:wuwppe:0504011
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    References listed on IDEAS

    as
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    3. Conway, Patrick, 1994. "IMF lending programs: Participation and impact," Journal of Development Economics, Elsevier, vol. 45(2), pages 365-391, December.
    4. Mr. Philip R. Gerson & Mr. George A Mackenzie & Mr. David William Harold Orsmond, 1997. "The Composition of Fiscal Adjustment and Growth: Lessons from Fiscal Reforms in Eight Economies," IMF Occasional Papers 1997/001, International Monetary Fund.
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    7. Jinyong Hahn & Jerry Hausman, 2002. "A New Specification Test for the Validity of Instrumental Variables," Econometrica, Econometric Society, vol. 70(1), pages 163-189, January.
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    11. Dicks-Mireaux, Louis & Mecagni, Mauro & Schadler, Susan, 2000. "Evaluating the effect of IMF lending to low-income countries," Journal of Development Economics, Elsevier, vol. 61(2), pages 495-526, April.
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    16. Robert R. Kaufman & Alex Segura-Ubiergo, 2005. "Globalization, Domestic Politics and Social Spending in Latin," Public Economics 0504009, University Library of Munich, Germany.
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    Citations

    Blog mentions

    As found by EconAcademics.org, the blog aggregator for Economics research:
    1. Bring Out the Punching Bag Again: The IMF, Aid, and Public Spending on Health
      by Amanda Glassman in Global Health Policy on 2011-01-20 04:54:43

    Citations

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    Cited by:

    1. Khan, Rana Ejaz Ali & Nawaz, Muhammad Atif & Hussain, Altaf, 2011. "Impact evaluation of structural adjustment program: a case of Pakistan," MPRA Paper 34835, University Library of Munich, Germany.
    2. Oberdabernig, Doris A., 2013. "Revisiting the Effects of IMF Programs on Poverty and Inequality," World Development, Elsevier, vol. 46(C), pages 113-142.
    3. Armenia ANDRONICEANU & Gurgen OHANYAN, 2016. "Comparative Approach on Education and Healthcare in Romania and Bulgaria as Beneficiaries of the IMF Financial Assistance," REVISTA ADMINISTRATIE SI MANAGEMENT PUBLIC, Faculty of Administration and Public Management, Academy of Economic Studies, Bucharest, Romania, vol. 2016(26), pages 25-48, June.

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    More about this item

    Keywords

    social spending; IMF-supported programs; health; education;
    All these keywords.

    JEL classification:

    • D6 - Microeconomics - - Welfare Economics
    • D7 - Microeconomics - - Analysis of Collective Decision-Making
    • H - Public Economics

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    This paper has been announced in the following NEP Reports:

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