Search Results - subject:"Budget constraint"

Fiscal Decentralization and Public Subnational Financial Management in Peru

Ahmad, Ehtisham; Garcia-Escribano, Mercedes - International Monetary Fund (IMF) - 2006

There is increasing interest in fiscal decentralization in Peru as a mechanism to generate more involved decision-making at the subnational level. This is tempered with a continuing emphasis on overall fiscal stability. However, considerable work needs to be undertaken to define more clearly...

Persistent link: https://www.econbiz.de/10005604830

What Transparency Can Do When Incentives Fail; An Analysis of Rent Capture

Paul, Elisabeth; Dabla-Norris, Era - International Monetary Fund (IMF) - 2006

This paper analyzes the pervasiveness and persistence of rent seeking, misgovernance, and public sector inefficiency in many developing and transition economies. We formalize evidence from country experiences and empirical studies into a stylized analytical framework that reflects realistic...

Persistent link: https://www.econbiz.de/10005604851

Mr. Ricardo's Great Adventure; Estimating Fiscal Multipliers in a Truly Intertemporal Model

Sgherri, Silvia; Bayoumi, Tamim - International Monetary Fund (IMF) - 2006

We estimate tax multipliers in a "Blanchard-Yaari" consumption model where Ricardian equivalence is broken because the private sector discounts the future at a faster rate than the real rate of interest. The model fits U.S. data since 1955 extremely well-entailing a discount wedge of around 20...

Persistent link: https://www.econbiz.de/10005825870

Primary Surplus Behavior and Risks to Fiscal Sustainability in Emerging Market Countries; A "Fan-Chart" Approach

Celasun, Oya; Debrun, Xavier; Ostry, Jonathan David - International Monetary Fund (IMF) - 2006

This paper proposes a probabilistic approach to public debt sustainability analysis (DSA) using "fan charts." These depict the magnitude of risks-upside and downside-surrounding public debt projections as a result of uncertain economic conditions and policies. We propose a simulation algorithm...

Persistent link: https://www.econbiz.de/10005826339

Credit Flows, Fiscal Policy, and the External Deficit of Bosnia and Herzegovina

Kanda, Daniel - International Monetary Fund (IMF) - 2006

This paper develops and estimates a model of the trade balance of Bosnia and Herzegovina. Credit flows and the fiscal stance are found to play a significant role in determining the trade balance. On this basis the paper discusses the trade-offs between monetary and fiscal policy settings needed...

Persistent link: https://www.econbiz.de/10005826416

Probabilistic Sustainability of Public Debt; A Vector Autoregression Approach for Brazil, Mexico, and Turkey

Tanner, Evan; Samaké, Issouf - International Monetary Fund (IMF) - 2006

This paper examines the sustainability of fiscal policy under uncertainty in three emerging market countries, Brazil, Mexico, and Turkey. For each country, we estimate a vector autoregression (VAR) that includes fiscal and macroeconomic variables. Retrospectively, a historical decomposition...

Persistent link: https://www.econbiz.de/10005826558

On the Properties of Various Estimators for Fiscal Reaction Functions

Celasun, Oya; Kang, Joong Shik - International Monetary Fund (IMF) - 2006

This paper evaluates the bias of the least-squares-with-dummy-variables (LSDV) method in fiscal reaction function estimations. A growing number of studies estimate fiscal policy reaction functions-that is, relationships between the primary fiscal balance and its determinants, including public...

Persistent link: https://www.econbiz.de/10005263679

Investment decisions and the soft budget constraint: evidence from Hungarian manufacturing firms

Colombo, Emilio; Stanca, Luca - Volkswirtschaftliche Fakultät, … - 2006

firms were affected differently depending on their ownership type. Reforms have hardened the budget constraint of private … subject to a soft budget constraint. In particular, small state firms became more sensitive to financial conditions, whereas … large state firms were unaffected and kept operating under a soft budget constraint. …

Persistent link: https://www.econbiz.de/10008472221

Syrian Arab Republic; Selected Issues

International Monetary Fund (IMF); International … - 2006

Syria faces two interrelated medium-term challenges posed by the prospective decline in its oil reserves. The recently approved five-year plan (FYP) laid down a comprehensive strategy to address these challenges. Syriaâ€™s public finances are headed for challenging times in the coming...

Persistent link: https://www.econbiz.de/10011242932

Democratic Republic of São Tomé and Príncipe; 2005 Article IV Consultation and First Review Under the Three-Year Arrangement Under the Poverty Reduction and Growth Facility: Staff Report; Staff Statement; Public Information Notice and Press Release on the Executive Board Discussion; and Statement by the Executive Director for the Democratic Republic of São Tomé and Príncipe

International Monetary Fund (IMF); International … - 2006

São Tomé and Príncipe pursued economic reforms and tried to reduce poverty amidst macroeconomic imbalances under the Poverty Reduction and Growth Facility (PRGF) program. Executive Directors supported the authorities’ decision to sustain the process of fiscal consolidation, and stressed the...

Persistent link: https://www.econbiz.de/10011243407