The Political Economy of Fiscal Policy - Public Deficits, Volatility, and Growth

One of the most striking macroeconomic developments during the last three decades is the rise and persistence of large fiscal deficits in a number of countries. Despite recent major fiscal reforms around the world, many countries suffer from recurrent large fiscal imbalances that often reflect lack of fiscal discipline. Why do some countries have recurrent fiscal deficit or volatility problems, while others do not? What factors are most important in explaining cross-country variation in fiscal outcomes? How are they related to growth or inflation? This book presents new, rigorous, theoretical and empirical studies on these fiscal issues, and highlights social polarization as an essential organizing principle in a political economy approach. Also, it discusses how institutional constraints may favourably affect fiscal dynamics in the presence of social polarization.

List of contents

Fiscal Deficit, Fiscal Volatility and Growth: Social Polarization.- Inflation, Composition of Deficit Finance, and Social Polarization.- Social Polarization, Industrialization, and Fiscal Instability.- Economic, Political, and Institutional Determinants of Public Deficits.- Growth, Income Inequality, and Fiscal Volatility: Empirical Evidence.

Summary

One of the most striking macroeconomic developments during the last three decades is the rise and persistence of large fiscal deficits in a number of countries. Despite recent major fiscal reforms around the world, many countries suffer from recurrent large fiscal imbalances that often reflect lack of fiscal discipline. Why do some countries have recurrent fiscal deficit or volatility problems, while others do not? What factors are most important in explaining cross-country variation in fiscal outcomes? How are they related to growth or inflation? This book presents new, rigorous, theoretical and empirical studies on these fiscal issues, and highlights social polarization as an essential organizing principle in a political economy approach. Also, it discusses how institutional constraints may favourably affect fiscal dynamics in the presence of social polarization.

Product details

• Authors: Jaejoon Woo
• Publisher: Springer, Berlin
• Languages: English
• Product format: Paperback / Softback
• Released: 28.12.2005
• EAN: 9783540296409
• ISBN: 978-3-540-29640-9
• No. of pages: 172
• Weight: 288 g
• Illustrations: X, 172 p.
• Series: Lecture Notes in Economics and Mathematical Systems; Lecture Notes in Economics and Mathematical Systems
• Subjects: Social sciences, law, business > Business > Economics; C, Economic Policy, Political Science, macroeconomics, Political science & theory, Public Economics, Economics and Finance, economic growth, Political Economy, Macroeconomics and Monetary Economics, Macroeconomics/Monetary Economics//Financial Economics, Monetary Economics, Management science, Public finance, Public finance & taxation, Development Economics, Development economics & emerging economies, Politikwissenschaft und politische Theorie