Fiscal Sustainability; A 21st Century Guide for the Perplexed

This paper critically reviews recent work regarding the sustainability of public debt. It argues that Debt Sustainability Analyses (DSAs) should be more than mere mechanical simulation exercises. Instead, a DSA should be linked to some objective regarding the distribution of fiscal burdens and distortions over time (in the tradition of Barro’s 1979 tax smoothing objective). The paper discusses objective functions that yield simple and transparent fiscal policy rules.

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Year of publication:	2013-04-22
Authors:	Tanner, Evan
Institutions:	International Monetary Fund (IMF)
Subject:	Fiscal sustainability \| Public debt \| Fiscal policy \| Debt sustainability analysis \| Business cycles \| fiscal adjustment \| budget constraint \| fiscal burden \| primary deficit \| fiscal authority \| government spending \| tax collection \| fiscal reaction \| taxation \| fiscal reaction function \| tax revenues \| tax burden \| fiscal imbalances \| tax system \| public expenditures \| public spending \| expenditure ratio \| sustainable fiscal policy \| primary surplus ratio \| fiscal rules \| foreign debt \| fiscal plan \| tax administration \| fiscal policy rules \| tax base \| fiscal policy debt \| tax rates \| fiscal balances \| public sector solvency \| fiscal institutions \| fiscal component \| spending cuts \| debt service \| government expenditures \| tax bases \| primary balance ratio \| fiscal policies \| fiscal stress \| fiscal deficits \| tax evasion \| fiscal adjustments \| fiscal burdens \| fiscal consolidations \| tax ratio

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Extent:	application/pdf
Series:	IMF Working Papers.
Type of publication:	Book / Working Paper
Notes:	The text is part of a series IMF Working Papers Number 13/89 4 pages long
Source:	RePEc - Research Papers in Economics

Persistent link: https://www.econbiz.de/10011242337