IMF Working Papers

Fiscal Adjustment in Transition Countries: Evidence From the 1990's

By Catriona Purfield

February 1, 2003

Download PDF

Preview Citation

Format: Chicago

Catriona Purfield. Fiscal Adjustment in Transition Countries: Evidence From the 1990's, (USA: International Monetary Fund, 2003) accessed November 21, 2024
Disclaimer: This Working Paper should not be reported as representing the views of the IMF.The views expressed in this Working Paper are those of the author(s) and do not necessarily represent those of the IMF or IMF policy. Working Papers describe research in progress by the author(s) and are published to elicit comments and to further debate

Summary

In the 1990s, transition countries underwent large adjustments to address fiscal imbalances. This paper examines whether the factors identified in the literature on advanced economies, the size and composition of adjustment, are important in transition economies. It finds that larger consolidations were more successful in addressing fiscal imbalances on a durable basis. Policies focusing on expenditure reductions were more successful than those relying on revenue increases. There is little evidence of expansionary fiscal contractions, but fiscal contractions did not have a significantly negative impact on growth either. Few fiscal stimuli succeeded in boosting growth.

Subject: Expenditure, Fiscal consolidation, Fiscal policy, Fiscal stabilization, Fiscal stance

Keywords: Appendix table, Baltics, Deficit, Economy, Expenditure cut, Expenditure increase, Expenditure policy, Fiscal adjustment, Fiscal consolidation, Fiscal policy, Fiscal stabilization, Fiscal stance, Inflation stabilization, Interest outlay, Logit probability, Logit regression, Revenue collection, Transition country, Transition economies, Transition economy, Wealth effect, Widening deficit, WP

Publication Details

  • Pages:

    22

  • Volume:

    ---

  • DOI:

    ---

  • Issue:

    ---

  • Series:

    Working Paper No. 2003/036

  • Stock No:

    WPIEA0362003

  • ISBN:

    9781451845471

  • ISSN:

    1018-5941

You May Also Be Interested In...

Growth Convergence and Public Finances of India and its States

November 15, 2024

Republic of Tajikistan: Technical Assistance Report-Public Investment Management Assessment with the Climate Module

November 8, 2024

Kenya: Seventh and Eighth Reviews Under the Extended Fund Facility and Extended Credit Facility Arrangements, Requests for Reduction of Access, Augmentation and Rephasing of Access Under the Arrangements, Modifications of Performance Criteria, Waiver of Nonobservance of Performance Criteria, and Review Under the Resilience and Sustainability Facility Arrangement-Press Release; Staff Report; and Statement by the Executive Director for Kenya

November 1, 2024

Mexico: 2024 Article IV Consultation and Review Under the Flexible Credit Line Arrangement-Press Release; Staff Report; and Statement by the Executive Director for Mexico

November 1, 2024