Improving the estimates of fiscal space

Adham Jaber
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Adham Jaber: Université Paris 1 Panthéon-Sorbonne

French Stata Users' Group Meetings 2022 from Stata Users Group

Abstract: I contribute to the fiscal space literature in both technical and empirical perspectives. First, I compute a time-varying fiscal space and show that complex fiscal space numbers resulting from solving the model provide crucial information in assessing fiscal sustainability; thus, they should not be ignored. I propose three different scenarios to deal with complex numbers in an empirical framework. Second, I provide a new determinant for fiscal sustainability: sustainable development. Using data from 24 OECD countries from 1998–2015, I find that sustainable development, proxied by an environmental, social, and governance performance index, has a robust positive impact on fiscal space.

Date: 2022-08-01
New Economics Papers: this item is included in nep-env
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Persistent link: https://EconPapers.repec.org/RePEc:boc:fsug22:16

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