Expenditure reform in industrialised countries: a case study approach

Ludger Schuknecht, Sebastian Hauptmeier and Martin Heipertz

No 634, Working Paper Series from European Central Bank

Abstract: This study examines reforms of public expenditure in industrialised countries over the past two decades. We distinguish ambitious and timid reformers and analyse in detail reform experiences in eight case studies of ambitious reform episodes. We find that ambitious reform countries reduce spending on transfers, subsidies and public consumption while largely sparing education spending. Such expenditure retrenchment is also typically part of a comprehensive reform package that includes improvements in fiscal institutions as well as structural and other macroeconomic reforms. The study finds that ambitious expenditure retrenchment and reform coincides with large improvements in fiscal and economic growth indicators. JEL Classification: H5, H6, O57

Keywords: case studies; Debt; deficit; economic growth; employment; expenditure reform; fiscal institutions; public expenditure (search for similar items in EconPapers)
Date: 2006-05
Note: 175489
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (26)

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Related works:
Journal Article: Expenditure Reform in Industrialised Countries: A Case-Study Approach* (2007)
Working Paper: Expenditure reform in industralised countries: a case study approach (2006)
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Persistent link: https://EconPapers.repec.org/RePEc:ecb:ecbwps:2006634

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