| Description |
1 online resource (22 pages) : illustrations |
| Series |
IMF working paper, 2227-8885 ; WP/06/89 |
|
IMF working paper ; WP/06/89.
|
| Contents |
Contents -- I. INTRODUCTION -- II. THE MODEL AND CALIBRATION -- III. MACROECONOMIC EFFECTS OF ALTERNATIVE FORMS OF FISCAL CONSOLIDATION -- IV. SENSITIVITY ANALYSIS AND FISCAL POLICIES IN THE REST OF THE WORLD -- V. COMBINING FISCAL ADJUSTMENT AND TAX REFORM -- VI. CONCLUSIONS -- REFERENCES |
| Summary |
This paper examines the macroeconomic effects of different timing and composition of fiscal adjustment in the United Kingdom using the IMF's Global Fiscal Model. Early consolidation dampens aggregate demand in the short term, but increases output in the long term as smaller primary surpluses are needed as a result of lower interest payments. Reducing government transfers or current government spending provides larger gains than increasing taxes, in particular compared to raising corporate or personal income taxes. We show that these conclusions are robust under alternative behavioral assumptions and parameterizations. A reduction in global saving would make early consolidation more urgent from both cyclical and long-term perspectives. Finally, we show that tax reform aimed at increasing incentives to save could provide support to fiscal consolidation measures |
| Bibliography |
Includes bibliographical references |
| Notes |
Master and use copy. Digital master created according to Benchmark for Faithful Digital Reproductions of Monographs and Serials, Version 1. Digital Library Federation, December 2002. http://purl.oclc.org/DLF/benchrepro0212 MiAaHDL |
|
English |
|
Print version record |
|
digitized 2010 HathiTrust Digital Library committed to preserve pda MiAaHDL |
| Subject |
Fiscal policy -- Great Britain -- Econometric models
|
|
Finance, Public -- Great Britain -- Econometric models
|
|
Finance, Public -- Econometric models
|
|
Fiscal policy -- Econometric models
|
|
Great Britain
|
| Form |
Electronic book
|
| Author |
Honjo, Keiko, author.
|
|
International Monetary Fund. European Department.
|
|
International Monetary Fund. Fiscal Affairs Department.
|
| ISBN |
1283516136 |
|
9781283516136 |
|
9781451908848 |
|
1451908849 |
|
1462352839 |
|
9781462352838 |
|
1452750149 |
|
9781452750149 |
|
9786613828583 |
|
6613828580 |
|
