Fiscal consolidations in the Central and Eastern European countries

Afonso, António; Nickel, Christiane; Rother, PhilippC.

http://hdl.handle.net/10400.5/25621

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Authors

Afonso, António

Nickel, Christiane

Rother, PhilippC.

Abstract(s)

We study fiscal consolidations in the Central and Eastern European countries and what determines the probability of their success. We define consolidation events as substantive improvements in fiscal balances adjusting for the impact of cyclical effects. We use logit models for the period 1991–2003 to assess the determinants of the success of a fiscal adjustment. The results seem to suggest that for these countries expenditure based consolidations have tended to be more successful. By contrast, revenue-based consolidations have a tendency to be less successful.

Keywords

Fiscal Policy Fiscal Episodes Central and Eastern Europe Logit Models

URI

http://hdl.handle.net/10400.5/25621

Citation

Afonso, António; Christiane Nickel and Philipp C. Rother. (2006). "Fiscal consolidations in the Central and Eastern European countries". Review of World Economics, Vol. 142, No. 2: pp. 402-421.