haku: @indexterm macroeconomics / yhteensä: 544
viite: 5 / 544
| Tekijä: | Arin, K.P. (et. al) |
| Otsikko: | Why are corrupt countries less successful in consolidating their budgets? |
| Lehti: | Journal of Public Economics
2011 : AUG, VOL 95:7-8, p. 521-530 |
| Asiasana: | corruption choice theory consolidation public finance macroeconomics stabilization debt debt management OECD |
| Kieli: | eng |
| Tiivistelmä: | After the financial crisis came around, several countries introduced fiscal stimulus packages, which made budget consolidations in the future rather challenging. Using a data set for 28 OECD countries between 1978-2007, we contribute to the research on success probabilities of consolidation attempts by exploring the impact of corruption, particularly the relationship between corruption and the choice of the policy instrument. It is found that corruption significantly reduces the success rate. When controlling for the change in government expenditures, however, the effect of corruption is insignificant or at least becomes less pronounced. Therefore, we relate the choice of the fiscal instrument to corruption and find that corrupt countries rely substantially less on expenditure cuts during periods of consolidation attempts. The conclusion is that international organizations should carefully observe what corrupt countries do when trying to consolidate their budgets. |
SCIMA