Are Fiscal Consolidation Episodes Helpful for Public Sector Efficiency?
Antonio Afonso and
No 9761, CESifo Working Paper Series from CESifo
We assess the consequences of fiscal consolidation episodes on public sector efficiency (scores) for 35 OECD countries for the 2007-2020 period. We find that fiscal consolidations improve public sector efficiency and results are robust across efficiency models. Moreover, peripheral euro-area economies and economies with debt-to-GDP ratios between 60% and 90% are those whose public sector efficiency scores improve more when fiscal consolidation episodes occur. The evidence that fiscal consolidations enhance spending efficiency is an additional argument for fiscal consolidations, from a policy perspective.
Keywords: fiscal consolidation episodes; government spending efficiency; panel data; OECD (search for similar items in EconPapers)
JEL-codes: C23 D61 E62 H21 H63 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-eff, nep-mac and nep-pub
References: View references in EconPapers View complete reference list from CitEc
Citations: Track citations by RSS feed
Downloads: (external link)
Journal Article: Are fiscal consolidation episodes helpful for public sector efficiency? (2023)
Working Paper: Are fiscal consolidation episodes helpful for public sector efficiency? (2022)
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:ces:ceswps:_9761
Access Statistics for this paper
More papers in CESifo Working Paper Series from CESifo Contact information at EDIRC.
Bibliographic data for series maintained by Klaus Wohlrabe ().