Cargando…

Fiscal adjustment in a panel of countries 1870–2016

The financial crisis from 2007 and, even more so, the Covid-19 pandemic caused large increases in public sector deficits and debts in many countries and prompted concern about fiscal adjustment. This paper examines fiscal adjustment to debt and deficits for a panel of 17 countries over 1870–2016 usi...

Descripción completa

Detalles Bibliográficos
Autor principal: Akhmadieva, Veronika
Formato: Online Artículo Texto
Lenguaje:English
Publicado: Published by Elsevier Inc. on behalf of Association for Comparative Economic Studies. 2022
Materias:
Acceso en línea:https://www.ncbi.nlm.nih.gov/pmc/articles/PMC9675945/
https://www.ncbi.nlm.nih.gov/pubmed/36438717
http://dx.doi.org/10.1016/j.jce.2021.12.003
_version_ 1784833482213556224
author Akhmadieva, Veronika
author_facet Akhmadieva, Veronika
author_sort Akhmadieva, Veronika
collection PubMed
description The financial crisis from 2007 and, even more so, the Covid-19 pandemic caused large increases in public sector deficits and debts in many countries and prompted concern about fiscal adjustment. This paper examines fiscal adjustment to debt and deficits for a panel of 17 countries over 1870–2016 using the Jordà–Schularick–Taylor Macrohistory Database. This long span panel is informative since it contains many examples of large fiscal shocks similar to those recently experienced. The results from reduced-form models suggest that large deficits or surpluses tend to prompt stabilising feedbacks, mainly through changes in revenue, and there is greater pressure to adjust on countries running a deficit versus those running a surplus. However, the debt–GDP ratio prompts much less stabilising feedback by expenditure or revenue.
format Online
Article
Text
id pubmed-9675945
institution National Center for Biotechnology Information
language English
publishDate 2022
publisher Published by Elsevier Inc. on behalf of Association for Comparative Economic Studies.
record_format MEDLINE/PubMed
spelling pubmed-96759452022-11-21 Fiscal adjustment in a panel of countries 1870–2016 Akhmadieva, Veronika J Comp Econ Article The financial crisis from 2007 and, even more so, the Covid-19 pandemic caused large increases in public sector deficits and debts in many countries and prompted concern about fiscal adjustment. This paper examines fiscal adjustment to debt and deficits for a panel of 17 countries over 1870–2016 using the Jordà–Schularick–Taylor Macrohistory Database. This long span panel is informative since it contains many examples of large fiscal shocks similar to those recently experienced. The results from reduced-form models suggest that large deficits or surpluses tend to prompt stabilising feedbacks, mainly through changes in revenue, and there is greater pressure to adjust on countries running a deficit versus those running a surplus. However, the debt–GDP ratio prompts much less stabilising feedback by expenditure or revenue. Published by Elsevier Inc. on behalf of Association for Comparative Economic Studies. 2022-06 2022-01-24 /pmc/articles/PMC9675945/ /pubmed/36438717 http://dx.doi.org/10.1016/j.jce.2021.12.003 Text en Crown Copyright © 2022 Published by Elsevier Inc. on behalf of Association for Comparative Economic Studies. All rights reserved. Since January 2020 Elsevier has created a COVID-19 resource centre with free information in English and Mandarin on the novel coronavirus COVID-19. The COVID-19 resource centre is hosted on Elsevier Connect, the company's public news and information website. Elsevier hereby grants permission to make all its COVID-19-related research that is available on the COVID-19 resource centre - including this research content - immediately available in PubMed Central and other publicly funded repositories, such as the WHO COVID database with rights for unrestricted research re-use and analyses in any form or by any means with acknowledgement of the original source. These permissions are granted for free by Elsevier for as long as the COVID-19 resource centre remains active.
spellingShingle Article
Akhmadieva, Veronika
Fiscal adjustment in a panel of countries 1870–2016
title Fiscal adjustment in a panel of countries 1870–2016
title_full Fiscal adjustment in a panel of countries 1870–2016
title_fullStr Fiscal adjustment in a panel of countries 1870–2016
title_full_unstemmed Fiscal adjustment in a panel of countries 1870–2016
title_short Fiscal adjustment in a panel of countries 1870–2016
title_sort fiscal adjustment in a panel of countries 1870–2016
topic Article
url https://www.ncbi.nlm.nih.gov/pmc/articles/PMC9675945/
https://www.ncbi.nlm.nih.gov/pubmed/36438717
http://dx.doi.org/10.1016/j.jce.2021.12.003
work_keys_str_mv AT akhmadievaveronika fiscaladjustmentinapanelofcountries18702016