IDEAS home Printed from https://ideas.repec.org/a/ekm/repojs/v11y1991i3p418-425id1473.html
   My bibliography  Save this article

The misleading operating deficit methodology

Author

Listed:
  • Álvaro Antônio Zini Jr.

Abstract

The concept of operational deficit is taken by many economists as the relevantconcept of public deficit. It is argued in this paper that the concept is flawed and that itscurrent method- ology of estimation is inadequate. In 1990, for instance, the Governmentdeducted an inflation of 1355% from the nominal deficit (PSBN), but only accounted anexpense of 837% as monetary correction in the expenditure side, to arrive at an estimate ofa 1,2% operational “surplus” over GDP. It is argued that such number is illusory and that abetter alternative is rouse an ex-ante concept of deficit for policy decisions. JEL Classification: H62; H60.

Suggested Citation

  • Álvaro Antônio Zini Jr., 1991. "The misleading operating deficit methodology," Brazilian Journal of Political Economy, Center of Political Economy, vol. 11(3), pages 418-425.
    • Handle: RePEc:ekm:repojs:v:11:y:1991:i:3:p:418-425:id:1473
    as

    Download full text from publisher

    File URL: https://centrodeeconomiapolitica.org.br/repojs/index.php/journal/article/view/1473/1459
    Download Restriction: no
    ---><---

    More about this item

    Keywords

    Public spending; déficit;

    JEL classification:

    • H62 - Public Economics - - National Budget, Deficit, and Debt - - - Deficit; Surplus
    • H60 - Public Economics - - National Budget, Deficit, and Debt - - - General

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ekm:repojs:v:11:y:1991:i:3:p:418-425:id:1473. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Brazilian Journal of Political Economy (Brazil) (email available below). General contact details of provider: https://centrodeeconomiapolitica.org/repojs/index.php/journal/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.