Expenditure Reform in Industrialised Countries: A Case-Study Approach*

Sebastian Hauptmeier, Martin Heipertz and Ludger Schuknecht

Fiscal Studies, 2007, vol. 28, issue 3, 293-342

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. 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. Copyright 2007 Institute for Fiscal Studies.

Date: 2007
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Related works:
Working Paper: Expenditure reform in industrialised countries: a case study approach (2006)
Working Paper: Expenditure reform in industralised countries: a case study approach (2006)
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