Publication:
Intertemporal Excess Burden, Bequest Motives, and the Budget Deficit

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dc.contributor.authorChen, Derek Hung Chiat
dc.date.accessioned2014-05-05T20:42:11Z
dc.date.available2014-05-05T20:42:11Z
dc.date.issued2003-06
dc.description.abstractThe author aims to empirically determine the significant factors that affect the levels of budget deficits of central governments across time and across countries. He empirically tests two prominent theories of budget deficits-the Barro (1979) tax-smoothing approach, and the still-untested theory of negative bequest motives advocated by Cukierman and Meltzer (1989). The author uses econometric techniques including fixed-effects (both country and time) panel regressions spanning 87 countries over the period 1975 to 1992, and the Griliches treatment of missing data. The author finds relatively stronger statistical support for the tax-smoothing approach among developing countries but not in industrial countries. The existence of empirical evidence supporting the theory of negative bequest motives is indeterminate. The author also conducted post-regression analyses to assess the proportion of observed differences in budget deficits the factors were actually able to explain. These reveal that both theories are generally weak in accounting for inter-temporal changes in budget deficit shares for both industrial and developing countries. The theories performed significantly better in accounting for cross-section differences. The author has many contributions to the literature. First, he analyzes the question of what determines the size of central government budget deficits using cross-country time series data leading into the 1990s. Second, he provides empirical tests of the still-untested Cukierman-Meltzer (1989) negative bequest motive theory of budget deficits. By using the panel data, the author attempts to determine the factors that influence not only the inter-temporal differences in budget deficits but also those factors that lead to cross-country differences. Last but not least, he provides some preliminary evidence that poverty reduction is necessary for long-term government budget deficit reduction.en
dc.identifierhttp://documents.worldbank.org/curated/en/2003/06/2427516/intertemporal-excess-burden-bequest-motives-budget-deficit
dc.identifier.doi10.1596/1813-9450-3086
dc.identifier.urihttps://hdl.handle.net/10986/18179
dc.languageEnglish
dc.language.isoen_US
dc.publisherWorld Bank, Washington, DC
dc.relation.ispartofseriesPolicy Research Workding Paper;No. 3086
dc.rightsCC BY 3.0 IGO
dc.rights.urihttp://creativecommons.org/licenses/by/3.0/igo/
dc.subjectACCOUNTING
dc.subjectBALANCED BUDGETS
dc.subjectBUDGET CONSTRAINT
dc.subjectBUDGET DEFICIT
dc.subjectBUDGET DEFICIT REDUCTION
dc.subjectBUDGET DEFICITS
dc.subjectBUDGET SURPLUS
dc.subjectCAPACITY BUILDING
dc.subjectCENTRAL GOVERNMENT
dc.subjectCENTRAL GOVERNMENT BUDGETS
dc.subjectCENTRAL GOVERNMENTS
dc.subjectCITIZENS
dc.subjectCLOSED ECONOMY
dc.subjectCONSTANT RETURNS TO SCALE
dc.subjectDEBT FINANCING
dc.subjectDISTRIBUTION OF INCOME
dc.subjectDISTRIBUTION OF WEALTH
dc.subjectECONOMIC BOOM
dc.subjectECONOMIC GROWTH
dc.subjectECONOMIC THEORY
dc.subjectEXOGENOUS VARIABLES
dc.subjectFEDERAL GOVERNMENT
dc.subjectFISCAL
dc.subjectFISCAL DEFICIT
dc.subjectFISCAL DEFICITS
dc.subjectFISCAL ILLUSION
dc.subjectFISCAL POLICY
dc.subjectFISCAL YEAR
dc.subjectGDP
dc.subjectGINI COEFFICIENT
dc.subjectGNP
dc.subjectGOVERNMENT BONDS
dc.subjectGOVERNMENT BUDGET
dc.subjectGOVERNMENT BUDGET DEFICIT
dc.subjectGOVERNMENT DEBT
dc.subjectGOVERNMENT EXPENDITURES
dc.subjectGOVERNMENT SPENDING
dc.subjectGROWTH RATE
dc.subjectINCOME
dc.subjectINCOME DISTRIBUTION
dc.subjectINFLATION
dc.subjectINFLATION RATE
dc.subjectINSTITUTIONAL ARRANGEMENTS
dc.subjectINTEREST RATE
dc.subjectINTEREST RATES
dc.subjectLEVELS OF GOVERNMENT
dc.subjectLOCAL GOVERNMENT
dc.subjectMACROECONOMIC CONDITIONS
dc.subjectMAJORITY RULE
dc.subjectMONEY INCOME
dc.subjectNATIONAL GOVERNMENTS
dc.subjectOPEN ECONOMIES
dc.subjectOPTIMIZATION
dc.subjectOVERLAPPING GENERATIONS MODEL
dc.subjectPOLITICAL ECONOMY
dc.subjectPRESENT VALUE
dc.subjectPRODUCTION FUNCTION
dc.subjectPRODUCTIVITY
dc.subjectPUBLIC DEBT
dc.subjectPUBLIC EXPENDITURE
dc.subjectPUBLIC FINANCE
dc.subjectPUBLIC FINANCE THEORY
dc.subjectPUBLIC GOODS
dc.subjectPUBLIC SECTOR
dc.subjectRANDOM WALK
dc.subjectREDISTRIBUTIVE EFFECTS
dc.subjectREGRESSION ANALYSES
dc.subjectRETIREMENT
dc.subjectRETURN ON ASSETS
dc.subjectSAVINGS
dc.subjectSIZE OF GOVERNMENT
dc.subjectSOCIAL SECURITY
dc.subjectTAX
dc.subjectTAX ADMINISTRATION
dc.subjectTAX AUTHORITIES
dc.subjectTAX BURDEN
dc.subjectTAX COLLECTION
dc.subjectTAX COLLECTIONS
dc.subjectTAX RATE
dc.subjectTAX RATES
dc.subjectTAX REVENUE
dc.subjectTAX REVENUES
dc.subjectTAXATION
dc.subjectTIME SERIES
dc.subjectVOTERS
dc.subjectWAGE RATES
dc.subjectWAGES
dc.subjectWEALTH BUDGET DEFICITS
dc.subjectINTERTEMPORAL LAW (INTERNATIONAL LAW)
dc.subjectCROSS-COUNTRY EXPERIENCE
dc.subjectTAX SYSTEMS
dc.subjectTAX SUBSIDIES
dc.subjectECONOMETRIC MODELS
dc.subjectMISSING OBSERVATIONS (STATISTICS)
dc.subjectCENTRAL GOVERNMENT
dc.subjectDATA ANALYSIS
dc.subjectPOVERTY REDUCTION
dc.subjectBUDGET DEFICITS
dc.subjectWEALTH
dc.titleIntertemporal Excess Burden, Bequest Motives, and the Budget Deficiten
dspace.entity.typePublication
okr.doctypePublications & Research::Policy Research Working Paper
okr.doctypePublications & Research
okr.docurlhttp://documents.worldbank.org/curated/en/2003/06/2427516/intertemporal-excess-burden-bequest-motives-budget-deficit
okr.globalpracticeMacroeconomics and Fiscal Management
okr.globalpracticeSocial, Urban, Rural and Resilience
okr.globalpracticeGovernance
okr.globalpracticeFinance and Markets
okr.globalpracticeGovernance
okr.guid466821468766465704
okr.identifier.doi10.1596/1813-9450-3086
okr.identifier.externaldocumentum000094946_03071204151548
okr.identifier.internaldocumentum2427516
okr.identifier.reportWPS3086
okr.language.supporteden
okr.pdfurlhttp://www-wds.worldbank.org/external/default/WDSContentServer/WDSP/IB/2003/07/26/000094946_03071204151548/Rendered/PDF/multi0page.pdfen
okr.sectorPublic Administration, Law, and Justice :: Central government administration
okr.sectorPublic Administration, Law, and Justice :: General public administration sector
okr.topicEconomic Theory and Research
okr.topicBanks and Banking Reform
okr.topicEnvironmental Economics and Policies
okr.topicMacroeconomics and Economic Growth::Economic Stabilization
okr.topicGovernance::National Governance
okr.topicPublic Sector Economics and Finance
okr.topicUrban Development::Municipal Financial Management
okr.topicFinance and Financial Sector Development
okr.unitWorld Bank Institute
okr.volume1
relation.isSeriesOfPublication26e071dc-b0bf-409c-b982-df2970295c87
relation.isSeriesOfPublication.latestForDiscovery26e071dc-b0bf-409c-b982-df2970295c87
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