| Titre : | The effects of fiscal consolidations on the composition of government spending |
| Auteurs : | Moulaye Bamba ; Jean-Louis Combes ; Alexandru Minea |
| Type de document : | Working Paper |
| Editeur : | Clermont-Ferrand : Centre d'études et de recherches sur le développement international (Cerdi), 2019 |
| Collection : | Études et Documents Cerdi, ISSN 2114-7957, num. 8 |
| Langues: | Anglais |
| Catégories : |
[Eurovoc] FINANCES > fiscalité > politique fiscale [Eurovoc] FINANCES > investissement et financement > investissement > investissement public |
| Tags : | Fiscal consolidation ; Government consumption ; Government investment |
| Résumé : | In response to increasing debt paths, governments often implement fiscal consolidation programs. This paper studies the impact of these programs on the composition of government spending. System-GMM estimations performed on a sample of 53 developed and emerging countries over 1980-2011 reveal that fiscal consolidations significantly reduce the government investment-to-consumption ratio, i.e. a composition effect. Robust to a wide set of tests, this significantly stronger contraction of government investment with respect to government consumption is at work particularly when debt is high, for spending-based fiscal consolidations, in the low phase of the economic cycle, and following debt and stock market crises. Therefore, in such contexts, fiscal consolidations aimed at short-run stabilization may hurt the economy in the long-run through their detrimental effect on public investment, calling for a reflection upon how they could be re-designed to allow avoiding such undesirable consequences. |
| Axe de recherche : | Financement du développement |
| En ligne : | https://halshs.archives-ouvertes.fr/halshs-02043892 |
Documents numériques (1)
https://halshs.archives-ouvertes.fr/halshs-02043892/file/BAMBA%20et%20al.%20E%26D%202019-8%20VERSION%20%C3%A0%20PUBLIER.pdf URL |
