IDEAS home Printed from https://ideas.repec.org/a/rfb/journl/v03y2011i2p075-089.html
   My bibliography  Save this article

Composition and Determinants of Fiscal Adjustment’s Success in the EU27 Contex

Author

Listed:
  • Laura Obreja Brasoveanu

    (Academia de Studii Economice / Facultatea de Finante, Asigurari, Banci si Burse de Valori)

Abstract

Current context brings new challenges posed by the decrease of public revenues,through lowering the tax base and the capacity to collect taxes, and by the inability to adjust the public expenditures. All countries face the challenges of fiscal adjustment. The aim of this paper is to identify the determinant factors of success for fiscal adjustment episodesin UE 27 context. The considered factors are the need, the size and the composition of the fiscal adjustment. The result of the logit models concluded that significant fiscal adjustments lead to sustainable deficit reduction, while the composition of fiscal adjustments through policies based on public expenditure or revenues does not significantly influence the probability of success.

Suggested Citation

  • Laura Obreja Brasoveanu, 2011. "Composition and Determinants of Fiscal Adjustment’s Success in the EU27 Contex," The Review of Finance and Banking, Academia de Studii Economice din Bucuresti, Romania / Facultatea de Finante, Asigurari, Banci si Burse de Valori / Catedra de Finante, vol. 3(2), pages 075-089, December.
    • Handle: RePEc:rfb:journl:v:03:y:2011:i:2:p:075-089
    as

    Download full text from publisher

    File URL: http://www.rfb.ase.ro/articole/P2.pdf
    File Function: Full text
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Alberto Alesina & Roberto Perotti, 1995. "Fiscal Expansions and Fiscal Adjustments in OECD Countries," NBER Working Papers 5214, National Bureau of Economic Research, Inc.
    2. Francesco Giavazzi & Marco Pagano, 1995. "Non-Keynesian Effects of Fiscal Policy Changes: International Evidence and the Swedish Experience," NBER Working Papers 5332, National Bureau of Economic Research, Inc.
    3. Mr. Leonardo Bartolini & Mr. Steven A. Symansky & Assaf Razin, 1995. "Fiscal Restructuring in the Group of Seven Major Industrial Countries in the 1990's: Macroeconomic Effects," IMF Working Papers 1995/035, International Monetary Fund.
    4. Alberto Alesina & Dorian Carloni & Giampaolo Lecce, 2012. "The Electoral Consequences of Large Fiscal Adjustments," NBER Chapters, in: Fiscal Policy after the Financial Crisis, pages 531-570, National Bureau of Economic Research, Inc.
    5. Carlos Mulas-Granados, 2005. "Fiscal Adjustments and the Short-Term Trade-Off between economic growth and equality," Hacienda Pública Española / Review of Public Economics, IEF, vol. 172(1), pages 61-92, June.
    6. Sanjeev Gupta & Luc Leruth & Luiz de Mello & Shamit Chakravarti, 2003. "Transition Economies: How Appropriate is the Size and Scope of Government?," Comparative Economic Studies, Palgrave Macmillan;Association for Comparative Economic Studies, vol. 45(4), pages 554-576, December.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Philippine Cour & Eric Dubois & Selma Mahfouz & Jean Pisani-Ferry, 1996. "The Cost of Fiscal Retrenchment Revisited: how Strong is the Evidence?," Working Papers 1996-16, CEPII research center.
    2. António Afonso & Christiane Nickel & Philipp C. Rother, 2006. "Fiscal Consolidations in the Central and Eastern European Countries," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 142(2), pages 402-421, July.
    3. Carmignani, Fabrizio, 2008. "The impact of fiscal policy on private consumption and social outcomes in Europe and the CIS," Journal of Macroeconomics, Elsevier, vol. 30(1), pages 575-598, March.
    4. Fatih Ozatay, 2008. "Expansionary Fiscal Consolidations: New Evidence from Turkey," Working Papers 0805, TOBB University of Economics and Technology, Department of Economics.
    5. Andrew Mountford & Harald Uhlig, 2009. "What are the effects of fiscal policy shocks?," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 24(6), pages 960-992.
    6. Miss Catriona Purfield, 2003. "Fiscal Adjustment in Transition Countries: Evidence From the 1990's," IMF Working Papers 2003/036, International Monetary Fund.
    7. Mr. Daniel Leigh & Mr. Andrea Pescatori & Mr. Jaime Guajardo, 2011. "Expansionary Austerity New International Evidence," IMF Working Papers 2011/158, International Monetary Fund.
    8. Charles Amo Yartey & Mr. Machiko Narita & Mr. Shelton M Nicholls & Mr. Joel Chiedu Okwuokei, 2012. "The Challenges of Fiscal Consolidation and Debt Reduction in the Caribbean," IMF Working Papers 2012/276, International Monetary Fund.
    9. Conrad Scheibe, 2016. "Fiscal Consolidations and Their Effects on Income Inequality," UCL SSEES Economics and Business working paper series 2016-4, UCL School of Slavonic and East European Studies (SSEES).
    10. Vansteenkiste, Isabel & Nickel, Christiane, 2008. "Fiscal policies, the current account and Ricardian equivalence," Working Paper Series 935, European Central Bank.
    11. Stephen M. Miller & Frank S. Russek, 2003. "The Relationship Between Large Fiscal Adjustments And Short‐Term Output Growth Under Alternative Fiscal Policy Regimes," Contemporary Economic Policy, Western Economic Association International, vol. 21(1), pages 41-58, January.
    12. Sebastian Hauptmeier & Martin Heipertz & Ludger Schuknecht, 2007. "Expenditure Reform in Industrialised Countries: A Case-Study Approach," Fiscal Studies, Institute for Fiscal Studies, vol. 28(3), pages 293-342, September.
    13. Agnello, Luca & Castro, Vitor & Sousa, Ricardo M., 2013. "What determines the duration of a fiscal consolidation program?," Journal of International Money and Finance, Elsevier, vol. 37(C), pages 113-134.
    14. Vincent (Vincent Peter) Hogan, 2001. "Expansionary fiscal contractions?," Working Papers 200103, School of Economics, University College Dublin.
    15. Lane, Philip R. & Perotti, Roberto, 2003. "The importance of composition of fiscal policy: evidence from different exchange rate regimes," Journal of Public Economics, Elsevier, vol. 87(9-10), pages 2253-2279, September.
    16. Pasquale Foresti & Ugo Marani, 2014. "Expansionary Fiscal Consolidations: Theoretical Underpinnings and their Implications for the Eurozone," Contributions to Political Economy, Cambridge Political Economy Society, vol. 33(1), pages 19-33.
    17. Francesco Daveri & Andrea Mascotto, "undated". "The IT revolution across the U.S. states," Working Papers 226, IGIER (Innocenzo Gasparini Institute for Economic Research), Bocconi University.
    18. Toshihiro Ihori & Atsushi Nakamoto, 2005. "Japan's fiscal policy and fiscal reconstruction," International Economics and Economic Policy, Springer, vol. 2(2), pages 153-172, November.
    19. V. De Bonis & R. Paladini, 1998. "Fiscal adjustments in Europe and Ricardian equivalence," Banca Nazionale del Lavoro Quarterly Review, Banca Nazionale del Lavoro, vol. 51(206), pages 247-272.
    20. Maria Neicheva, 2006. "Non-Keynesian Effects of Government Expenditure on Output in Bulgaria: An HP Filter Approach," Post-Communist Economies, Taylor & Francis Journals, vol. 18(1), pages 1-12.

    More about this item

    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:rfb:journl:v:03:y:2011:i:2:p:075-089. 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.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with 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: Tatu Lucian (email available below). General contact details of provider: https://edirc.repec.org/data/ffasero.html .

    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.