Publication:
Walking Up the Down Escalator : Public Investment and Fiscal Stability

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dc.contributor.authorEasterly, William
dc.contributor.authorIrwin, Timothy
dc.contributor.authorServén, Luis
dc.date.accessioned2012-06-05T20:47:29Z
dc.date.available2012-06-05T20:47:29Z
dc.date.issued2007-03
dc.description.abstractFiscal adjustment becomes like walking up the down escalator when growth-promoting spending is cut so much as to lower growth and thus the present value of future tax revenues to a degree that more than offsets the improvement in the cash deficit. Although short-term cash flows matter, a preponderant focus on them encourages governments to invest too little. Cash flow targets also encourage governments to shift investment spending off budget, by seeking private investment in public projects-irrespective of its real fiscal or economic benefits. To evade the action of cash flow targets, some have suggested excluding from their scope certain investments (such as those undertaken by public enterprises deemed commercial or financed by multilaterals). These stopgap remedies might sometimes help protect investment, but they do not provide a satisfactory solution to the underlying problem. Governments can more effectively reduce the biases created by the focus on short-term cash flows by developing indicators of the long-term fiscal effects of their decisions, including accounting and economic measures of net worth, and where appropriate including such measures in fiscal targets or even fiscal rules, replacing the exclusive focus on liquidity and debt.en
dc.identifierhttp://documents.worldbank.org/curated/en/2007/03/7435956/walking-up-down-escalator-public-investment-fiscal-stability
dc.identifier.doi10.1596/1813-9450-4158
dc.identifier.urihttps://hdl.handle.net/10986/7191
dc.languageEnglish
dc.publisherWorld Bank, Washington, DC
dc.relation.ispartofseriesPolicy Research Working Paper; No. 4158
dc.rightsCC BY 3.0 IGO
dc.rights.holderWorld Bank
dc.rights.urihttp://creativecommons.org/licenses/by/3.0/igo/
dc.subjectACCOUNTING
dc.subjectACCOUNTING STANDARDS
dc.subjectACCRUAL ACCOUNTING
dc.subjectADJUSTMENT PROGRAMS
dc.subjectAGGREGATE BUDGET
dc.subjectAGGREGATE DEMAND
dc.subjectASSET VALUE
dc.subjectBRIBES
dc.subjectBUDGET ALLOCATION
dc.subjectBUDGET DEPARTMENT
dc.subjectBUDGET SURPLUS
dc.subjectBUDGETARY MANAGEMENT
dc.subjectBUDGETARY RESOURCES
dc.subjectBURDEN OF TAXATION
dc.subjectCAPITAL ACCUMULATION
dc.subjectCAPITAL EXPENDITURE
dc.subjectCAPITAL EXPENDITURES
dc.subjectCAPITAL NEEDS
dc.subjectCAPITAL STOCK
dc.subjectCASH DEFICIT
dc.subjectCASH FLOW
dc.subjectCASH FLOWS
dc.subjectCOMPETITIVE MARKETS
dc.subjectCOMPOSITION OF EXPENDITURES
dc.subjectCORPORATE GOVERNANCE
dc.subjectCOST OF CAPITAL
dc.subjectCOST RECOVERY
dc.subjectDEBT
dc.subjectDEBT CRISIS
dc.subjectDEBT DYNAMICS
dc.subjectDEFICIT FINANCE
dc.subjectDEFICIT FINANCING
dc.subjectDEFICITS
dc.subjectEDUCATION EXPENDITURES
dc.subjectEDUCATION SERVICES
dc.subjectENTITLEMENTS
dc.subjectEXPECTED RETURNS
dc.subjectEXPENDITURE CUTS
dc.subjectEXPENDITURE ITEM
dc.subjectEXPENDITURES
dc.subjectFINANCIAL ASSETS
dc.subjectFINANCIAL MARKET
dc.subjectFINANCIAL REPORTING
dc.subjectFINANCIAL REPORTS
dc.subjectFISCAL ADJUSTMENT
dc.subjectFISCAL AGGREGATES
dc.subjectFISCAL AUSTERITY
dc.subjectFISCAL AUTHORITIES
dc.subjectFISCAL DEFICIT
dc.subjectFISCAL DISCIPLINE
dc.subjectFISCAL INSTITUTIONS
dc.subjectFISCAL PERFORMANCE
dc.subjectFISCAL POLICY
dc.subjectFISCAL POSITION
dc.subjectFISCAL PROJECTIONS
dc.subjectFISCAL RETRENCHMENT
dc.subjectFISCAL RULES
dc.subjectFISCAL STABILITY
dc.subjectFISCAL STANCE
dc.subjectFISCAL STIMULUS
dc.subjectFISCAL STRATEGIES
dc.subjectFISCAL STRATEGY
dc.subjectFISCAL TARGETS
dc.subjectFUNGIBILITY
dc.subjectGOVERNMENT SOLVENCY
dc.subjectGROSS DEBT
dc.subjectGROWTH OF PUBLIC SPENDING
dc.subjectGROWTH POTENTIAL
dc.subjectGROWTH RATES
dc.subjectHIGHER INTEREST
dc.subjectHIGHER INTEREST RATES
dc.subjectINDEPENDENT AUDITOR
dc.subjectINFRASTRUCTURE INVESTMENT
dc.subjectINFRASTRUCTURE PROJECTS
dc.subjectINFRASTRUCTURE SERVICES
dc.subjectINVESTMENT DECISIONS
dc.subjectINVESTMENT FLOWS
dc.subjectINVESTMENT PROJECTS
dc.subjectINVESTMENT RISK
dc.subjectLATIN AMERICAN
dc.subjectLEVEL OF INDEBTEDNESS
dc.subjectLIQUIDITY
dc.subjectMACROECONOMIC MODEL
dc.subjectMACROECONOMIC STABILITY
dc.subjectMACROECONOMIC STABILIZATION
dc.subjectMARGINAL COST
dc.subjectMARGINAL EXCESS
dc.subjectMARGINAL EXCESS BURDEN
dc.subjectMARKET VALUE
dc.subjectNET LENDING
dc.subjectNET WORTH
dc.subjectPERFORMANCE INDICATORS
dc.subjectPERFORMANCE TARGETS
dc.subjectPOLITICIANS
dc.subjectPOVERTY REDUCTION
dc.subjectPRESENT VALUE
dc.subjectPRIMARY DEFICIT
dc.subjectPRIVATE FIRMS
dc.subjectPRIVATE INVESTMENT
dc.subjectPRIVATE INVESTORS
dc.subjectPRIVATE SECTOR
dc.subjectPRIVATE SECTOR INVOLVEMENT
dc.subjectPRIVATE SECTOR PARTICIPATION
dc.subjectPROFITABILITY
dc.subjectPROGRAMS
dc.subjectPROVISION OF INFRASTRUCTURE
dc.subjectPUBLIC
dc.subjectPUBLIC CAPITAL
dc.subjectPUBLIC CONSUMPTION
dc.subjectPUBLIC DEBT
dc.subjectPUBLIC ENTERPRISES
dc.subjectPUBLIC ENTITIES
dc.subjectPUBLIC EXPENDITURE
dc.subjectPUBLIC EXPENDITURES
dc.subjectPUBLIC FINANCES
dc.subjectPUBLIC GOODS
dc.subjectPUBLIC INFRASTRUCTURE
dc.subjectPUBLIC INVESTMENT
dc.subjectPUBLIC INVESTMENT IN INFRASTRUCTURE
dc.subjectPUBLIC INVESTMENT PROGRAM
dc.subjectPUBLIC INVESTMENT SPENDING
dc.subjectPUBLIC INVESTMENTS
dc.subjectPUBLIC PROCUREMENT
dc.subjectPUBLIC REVENUES
dc.subjectPUBLIC SECTOR
dc.subjectPUBLIC SECTOR BORROWING
dc.subjectPUBLIC SECTOR BORROWING REQUIREMENT
dc.subjectPUBLIC SECTOR NET WORTH
dc.subjectPUBLIC SECTOR PROJECTS
dc.subjectPUBLIC SECTOR RETRENCHMENT
dc.subjectPUBLIC SECTOR SOLVENCY
dc.subjectPUBLIC SERVICES
dc.subjectPUBLIC SPENDING
dc.subjectREAL INTEREST RATE
dc.subjectRECURRENT EXPENDITURES
dc.subjectREVENUE COLLECTION
dc.subjectREVENUE INCREASES
dc.subjectRISK PREMIUM
dc.subjectROADS
dc.subjectSOCIAL RETURN
dc.subjectSOCIAL RETURNS
dc.subjectSPENDING CUTS
dc.subjectSUB-SAHARAN AFRICA
dc.subjectTAX
dc.subjectTAX BASES
dc.subjectTAX COLLECTION
dc.subjectTAX RATE
dc.subjectTAX REVENUE
dc.subjectTAX REVENUES
dc.subjectTAXATION
dc.subjectTELECOMMUNICATIONS
dc.subjectTOTAL SPENDING
dc.subjectTRANSPARENCY
dc.subjectUNCERTAINTY
dc.subjectUTILITIES
dc.titleWalking Up the Down Escalator : Public Investment and Fiscal Stabilityen
dspace.entity.typePublication
okr.crossref.titleWalking Up The Down Escalator : Public Investment And Fiscal Stability
okr.date.doiregistration2025-04-10T10:12:08.225816Z
okr.doctypePublications & Research::Policy Research Working Paper
okr.doctypePublications & Research
okr.docurlhttp://documents.worldbank.org/curated/en/2007/03/7435956/walking-up-down-escalator-public-investment-fiscal-stability
okr.globalpracticeMacroeconomics and Fiscal Management
okr.globalpracticeGovernance
okr.guid843051468316133922
okr.identifier.doi10.1596/1813-9450-4158
okr.identifier.externaldocumentum000016406_20070306100250
okr.identifier.internaldocumentum7435956
okr.identifier.reportWPS4158
okr.language.supporteden
okr.pdfurlhttp://www-wds.worldbank.org/external/default/WDSContentServer/WDSP/IB/2007/03/06/000016406_20070306100250/Rendered/PDF/wps4158.pdfen
okr.topicMacroeconomics and Economic Growth::Fiscal Adjustment
okr.topicMacroeconomics and Economic Growth::Investment and Investment Climate
okr.topicPublic Sector Expenditure Analysis and Management
okr.topicMacroeconomics and Economic Growth::Economic Stabilization
okr.topicPublic Sector Economics and Finance
okr.topicPublic Sector Development
okr.unitDevelopment Research Group (DECRG)
okr.volume1 of 1
relation.isAuthorOfPublication4cdd14e3-d673-5b41-bfda-166d60c2e404
relation.isAuthorOfPublication2c4139d2-7458-5296-9aea-6d3db3e1ae1e
relation.isAuthorOfPublication.latestForDiscovery2c4139d2-7458-5296-9aea-6d3db3e1ae1e
relation.isSeriesOfPublication26e071dc-b0bf-409c-b982-df2970295c87
relation.isSeriesOfPublication.latestForDiscovery26e071dc-b0bf-409c-b982-df2970295c87
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