IDEAS home Printed from https://ideas.repec.org/p/ash/wpaper/126.html
   My bibliography  Save this paper

Fiscal Consolidation and Public Debt

Author

Listed:
  • Sakai Ando

    (International Monetary Fund)

  • Prachi Mishra

    (Ashoka University)

  • Nikhil Patel

    (International Monetary Fund)

  • Adrian Peralta- Alva

    (International Monetary Fund)

  • Andrea F. Presbitero

    (International Monetary Fund and CEPR)

Abstract

High public debt is urging policy makers to consider strategies to rebuild buffers and preserve debt sustainability. We study whether—and under which conditions—fiscal consolidation is likely to be associated with a durable reduction in public debt to GDP ratios. Our findings based on a sample of advanced and emerging countries indicate that the average fiscal consolidation has a minimal effect. However, discretionary consolidations (or an increase in the primary balance to GDP beyond what is driven by business cycle considerations) implemented during economic upturns or in scenarios where they can “crowd in†private investment, are likely to be associated with sustained reductions in debt ratios.

Suggested Citation

  • Sakai Ando & Prachi Mishra & Nikhil Patel & Adrian Peralta- Alva & Andrea F. Presbitero, 2024. "Fiscal Consolidation and Public Debt," Working Papers 126, Ashoka University, Department of Economics.
    • Handle: RePEc:ash:wpaper:126
    as

    Download full text from publisher

    File URL: https://dp.ashoka.edu.in/ash/wpaper/paper126_0.pdf
    Download Restriction: no
    ---><---

    More about this item

    Keywords

    Fiscal consolidation;

    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:ash:wpaper:126. 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: Ashoka University (email available below). General contact details of provider: https://www.ashoka.edu.in .

    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.