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Fiscal Policy in Developing Countries : A Framework and Some Questions

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dc.contributor.authorPerotti, Roberto
dc.date.accessioned2012-06-06T21:43:09Z
dc.date.available2012-06-06T21:43:09Z
dc.date.issued2007-09
dc.description.abstractThis paper surveys fiscal policy in developing countries from the point of view of long-run growth. The first section reviews existing methodologies to estimate the effects of fiscal policy shocks and of systematic fiscal policy, with time series or with cross-sectional methods, and their applicability to developing countries. The second section surveys optimal fiscal policy in developing countries, by considering the role of the intertemporal government budget, and sustainability and solvency. It also reviews the fuzzy debate on "fiscal space" and "macroeconomic space" - and the usefulness (or lack thereof) of these terms for policy analysis. The third section asks what theory tells us about the optimal cyclical behavior of fiscal policy in developing countries. It shows that it very much depends on the assumptions about the interactions between credit market imperfections at the individual, firms, or government level, and on the supply of external funds to the country. Different sets of assumptions lead to different implications about optimal cyclical behavior. The available evidence on the cyclical behavior of fiscal policy, and possible reasons for the observed prevalence of a procyclical behavior in developing countries, is also reviewed. If one agrees that fiscal policy is indeed less countercyclical than we think is optimal, the issue is how to correct the problem. One obvious question is why government do not self-insure, i.e. why they do not accumulate assets in upturns and decumulate them in downturns. This leads to the analysis of fiscal rules and stabilization funds, in the fourth section. The last section concludes with what the author considers important research and policy questions in each part.en
dc.identifierhttp://documents.worldbank.org/curated/en/2007/09/8341115/fiscal-policy-developing-countries-framework-some-questions
dc.identifier.doi10.1596/1813-9450-4365
dc.identifier.urihttps://hdl.handle.net/10986/7359
dc.languageEnglish
dc.publisherWorld Bank, Washington, DC
dc.relation.ispartofseriesPolicy Research Working Paper; No. 4365
dc.rightsCC BY 3.0 IGO
dc.rights.holderWorld Bank
dc.rights.urihttp://creativecommons.org/licenses/by/3.0/igo/
dc.subjectACCOUNTING
dc.subjectAGGREGATE DEMAND
dc.subjectAUTOMATIC STABILIZER
dc.subjectAUTOMATIC STABILIZERS
dc.subjectBAILOUT
dc.subjectBINDING CONSTRAINT
dc.subjectBUDGET AGGREGATES
dc.subjectBUDGET BALANCE
dc.subjectBUDGET CONSTRAINT
dc.subjectBUDGET DEFICIT
dc.subjectBUDGET OUTCOMES
dc.subjectBUDGET RESOURCES
dc.subjectBUDGET RULES
dc.subjectBUDGET SURPLUS
dc.subjectBUDGETARY POLICY
dc.subjectBUSINESS CYCLE
dc.subjectCAPITAL FLOWS
dc.subjectCAPITAL FORMATION
dc.subjectCAPITAL INFLOWS
dc.subjectCAPITAL SPENDING
dc.subjectCAPITAL STOCK
dc.subjectCAPITAL STOCKS
dc.subjectCASH TRANSFER
dc.subjectCOMMODITY PRICES
dc.subjectCONSUMPTION SMOOTHING
dc.subjectCONTINGENT LIABILITIES
dc.subjectCOST OF CAPITAL
dc.subjectCOST-BENEFIT ANALYSIS
dc.subjectCREATIVE ACCOUNTING
dc.subjectCREDIBILITY
dc.subjectCREDIT CONSTRAINTS
dc.subjectCREDIT MARKET
dc.subjectCREDIT MARKETS
dc.subjectCREDITWORTHINESS
dc.subjectCURRENT ACCOUNT DEFICIT
dc.subjectCURRENT ACCOUNT DEFICITS
dc.subjectCURRENT ACCOUNT SURPLUS
dc.subjectDATA AVAILABILITY
dc.subjectDEBT DEFAULT
dc.subjectDEBT FINANCING
dc.subjectDEBT LEVEL
dc.subjectDEBT LIMIT
dc.subjectDEBT OUTSTANDING
dc.subjectDEBT RATIO
dc.subjectDEBTS
dc.subjectDEFICITS
dc.subjectDERIVATIVE
dc.subjectDEVELOPING COUNTRIES
dc.subjectDEVELOPMENT ECONOMICS
dc.subjectDISCRETIONARY FISCAL POLICY
dc.subjectDISTRIBUTIONAL EFFECTS
dc.subjectDISTRIBUTIONAL IMPACT
dc.subjectDISTRIBUTIONAL IMPACTS
dc.subjectDISTRIBUTIONAL OBJECTIVES
dc.subjectDUMMY VARIABLES
dc.subjectECONOMIC CONDITIONS
dc.subjectECONOMIC POLICY
dc.subjectEDUCATION SPENDING
dc.subjectEFFECTS OF SHOCKS
dc.subjectELASTICITIES
dc.subjectEXOGENOUS SHOCKS
dc.subjectEXPENDITURE
dc.subjectEXTERNAL FUNDING
dc.subjectFINANCE MINISTRY
dc.subjectFINANCIAL CONSTRAINTS
dc.subjectFINANCIAL CRISES
dc.subjectFINANCIAL CRISIS
dc.subjectFINANCIAL INSTITUTIONS
dc.subjectFINANCIAL INSTRUMENTS
dc.subjectFINANCIAL MARKET
dc.subjectFINANCIAL POSITION
dc.subjectFINANCIAL SYSTEM
dc.subjectFISCAL AGGREGATES
dc.subjectFISCAL CRISIS
dc.subjectFISCAL DATA
dc.subjectFISCAL DISCIPLINE
dc.subjectFISCAL FEDERALISM
dc.subjectFISCAL OPERATIONS
dc.subjectFISCAL PERFORMANCE
dc.subjectFISCAL POLICIES
dc.subjectFISCAL POLICY
dc.subjectFISCAL PROBLEMS
dc.subjectFISCAL PROGRAM
dc.subjectFISCAL REVENUE
dc.subjectFISCAL RULE
dc.subjectFISCAL RULES
dc.subjectFISCAL STANCE
dc.subjectFOREIGN RESERVES
dc.subjectFORMAL SECTOR
dc.subjectGDP
dc.subjectGOLDEN RULE
dc.subjectGOVERNMENT ACCOUNTS
dc.subjectGOVERNMENT ASSETS
dc.subjectGOVERNMENT BUDGET
dc.subjectGOVERNMENT BUDGET CONSTRAINT
dc.subjectGOVERNMENT BUDGETS
dc.subjectGOVERNMENT CONSUMPTION
dc.subjectGOVERNMENT DEBT
dc.subjectGOVERNMENT DEFICIT
dc.subjectGOVERNMENT INVESTMENT
dc.subjectGOVERNMENT REVENUES
dc.subjectGOVERNMENT SPENDING
dc.subjectGROWTH RATE
dc.subjectHEALTH SPENDING
dc.subjectHIGHER DEFICITS
dc.subjectHIGHER GOVERNMENT SPENDING
dc.subjectHIGHER INFLATION
dc.subjectHOLDING
dc.subjectHUMAN CAPITAL
dc.subjectINCOME TAXES
dc.subjectINFLATION RATE
dc.subjectINFRASTRUCTURE INVESTMENT
dc.subjectINFRASTRUCTURE PROJECTS
dc.subjectINITIAL DEBT
dc.subjectINSURANCE
dc.subjectINSURANCE POLICY
dc.subjectINTEREST RATE
dc.subjectINTEREST RATES
dc.subjectINTERNATIONAL BANK
dc.subjectINTERNATIONAL CAPITAL
dc.subjectINTERNATIONAL CAPITAL MARKETS
dc.subjectINTERNATIONAL CREDIT
dc.subjectINTERNATIONAL FINANCIAL MARKETS
dc.subjectINTERNATIONAL INVESTORS
dc.subjectINVESTMENT POLICIES
dc.subjectINVESTMENT PROJECTS
dc.subjectINVESTMENT SPENDING
dc.subjectLEVEL OF DEBT
dc.subjectLIABILITY
dc.subjectLIQUIDITY
dc.subjectLIQUIDITY PREMIUM
dc.subjectMACROECONOMIC STABILITY
dc.subjectMARGINAL CHANGE
dc.subjectMARGINAL RATE
dc.subjectMARGINAL UTILITIES OF CONSUMPTION
dc.subjectMARGINAL UTILITY OF CONSUMPTION
dc.subjectMARKET ACCESS
dc.subjectMARKET CONFIDENCE
dc.subjectMONETARY AUTHORITIES
dc.subjectMONETARY POLICY
dc.subjectNATIONAL AUTHORITIES
dc.subjectNEGATIVE SHOCK
dc.subjectNEGATIVE SHOCKS
dc.subjectNEOCLASSICAL MODELS
dc.subjectNET DEBT
dc.subjectNET INVESTMENT
dc.subjectNET WORTH
dc.subjectOIL PRICES
dc.subjectOUTSTANDING DEBT
dc.subjectPENSION
dc.subjectPENSIONS
dc.subjectPOLITICAL APPOINTEES
dc.subjectPOLITICAL ECONOMY
dc.subjectPOLITICIANS
dc.subjectPOSITIVE COEFFICIENT
dc.subjectPRECAUTIONARY SAVINGS
dc.subjectPRIVATE CAPITAL
dc.subjectPRIVATE CONSUMPTION
dc.subjectPRIVATE INVESTMENT
dc.subjectPRIVATE INVESTORS
dc.subjectPRIVATE SAVINGS
dc.subjectPRIVATE SECTOR
dc.subjectPROGRAMS
dc.subjectPUBLIC CAPITAL
dc.subjectPUBLIC DEBT
dc.subjectPUBLIC ENTERPRISES
dc.subjectPUBLIC EXPENDITURE
dc.subjectPUBLIC FINANCE
dc.subjectPUBLIC FINANCES
dc.subjectPUBLIC GOODS
dc.subjectPUBLIC INFRASTRUCTURE
dc.subjectPUBLIC INVESTMENT
dc.subjectPUBLIC SECTOR
dc.subjectPUBLIC TRANSPORTATION
dc.subjectRATE OF INFLATION
dc.subjectRATE OF RETURN
dc.subjectRATES OF RETURN
dc.subjectRATES OF RETURNS
dc.subjectREAL EXCHANGE RATE
dc.subjectREAL INTEREST
dc.subjectREAL INTEREST RATE
dc.subjectREAL WAGE
dc.subjectRELATIVE PRICES
dc.subjectRESERVE
dc.subjectRESERVES
dc.subjectRETURNS
dc.subjectRISK NEUTRAL
dc.subjectSHOCK TO INCOME
dc.subjectSIZE OF GOVERNMENT
dc.subjectSOCIAL ASSISTANCE
dc.subjectSOCIAL INSURANCE
dc.subjectSOCIAL RETURN
dc.subjectSOCIAL RETURNS
dc.subjectSOCIAL SECURITY
dc.subjectSOCIAL WELFARE
dc.subjectSOLVENCY
dc.subjectSTABILIZATION POLICIES
dc.subjectSUSTAINABILITY ANALYSIS
dc.subjectTAX
dc.subjectTAX BURDEN
dc.subjectTAX CUTS
dc.subjectTAX RATE
dc.subjectTAX RATES
dc.subjectTAX REDUCTION
dc.subjectTAX REVENUE
dc.subjectTAX REVENUES
dc.subjectTAX SHOCKS
dc.subjectTAXATION
dc.subjectTAXPAYERS
dc.subjectTRADE BALANCE
dc.subjectTRADING
dc.subjectTRANSPARENCY
dc.subjectTREATY
dc.subjectUNCERTAINTY
dc.subjectVALUATION
dc.subjectWAGES
dc.subjectWEALTH EFFECT
dc.subjectWORLD FINANCIAL MARKETS
dc.titleFiscal Policy in Developing Countries : A Framework and Some Questionsen
dspace.entity.typePublication
okr.crossref.titleFiscal Policy In Developing Countries : A Framework And Some Questions
okr.date.doiregistration2025-04-10T10:42:52.945463Z
okr.doctypePublications & Research::Policy Research Working Paper
okr.doctypePublications & Research
okr.docurlhttp://documents.worldbank.org/curated/en/2007/09/8341115/fiscal-policy-developing-countries-framework-some-questions
okr.globalpracticeMacroeconomics and Fiscal Management
okr.globalpracticeFinance and Markets
okr.globalpracticeGovernance
okr.guid108941468138570564
okr.identifier.doi10.1596/1813-9450-4365
okr.identifier.externaldocumentum000158349_20070920144922
okr.identifier.internaldocumentum8341115
okr.identifier.reportWPS4365
okr.language.supporteden
okr.pdfurlhttp://www-wds.worldbank.org/external/default/WDSContentServer/WDSP/IB/2007/09/20/000158349_20070920144922/Rendered/PDF/WPS4365.pdfen
okr.topicEconomic Theory and Research
okr.topicPublic Sector Expenditure Analysis and Management
okr.topicFinance and Financial Sector Development::Debt Markets
okr.topicMacroeconomics and Economic Growth::Economic Stabilization
okr.topicPublic Sector Development
okr.unitDevelopment Research Group (DECRG)
okr.volume1 of 1
relation.isSeriesOfPublication26e071dc-b0bf-409c-b982-df2970295c87
relation.isSeriesOfPublication.latestForDiscovery26e071dc-b0bf-409c-b982-df2970295c87
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