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The Composition of Fiscal Consolidation Matters.pdf

The Composition of Fiscal Consolidation Matters true
By:Mr. Alejandro D. Guerson
Published on 2013-10-04 by International Monetary Fund


This paper evaluates policy alternatives to achieve permanent fiscal consolidation in Hungary, based on a general equilibrium calibration. The main finding is that the composition of the consolidation, as determined by the mix of revenue and expenditure measures, has important implications for growth, employment, investment, and other key macroeconomic variables. A reduction in current expenditures yields the smallest GDP contraction in the short term and can increase output in the long term by stimulating labor participation and private investment. On the other end of the spectrum, a consolidation of government investment and corporate taxes are the most costly, as disincentives for private investment result in protracted declines in GDP that compound over time to GDP losses that are multiple times the initial size of the consolidation.

This Book was ranked at 29 by Google Books for keyword Consolidation.

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Book which was published by International Monetary Fund since 2013-10-04 have ISBNs, ISBN 13 Code is 9781475527902 and ISBN 10 Code is 147552790X

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