INTEGRATING FISCAL MATTERS WITH ENVIRONMENTAL SUSTAINABILITY IN ASEAN COUNTRIES: ROLE OF FISCAL DEFICIT, INTEREST RATE AND STOCK EXCHANGE INDEX

1 Fiscal Flows , Fiscal Balance , and Fiscal Sustainability Richard

The search for “fiscal indicators” to provide a short-hand (and preferably quantitative) picture of the size, direction, and nature of intergovernmental finance – and, ideally, some guidance for policy designed to improve outcomes – appears to be neverending. “Fiscal balance” and “fiscal sustainability” are, for example, terms commonly heard in discussions of intergovernmental fiscal relations....

Analysing the Sustainability of Fiscal Deficits in Developing Countries

Measuring Fiscal Sustainability

We propose an index of the fiscal stance that is convenient for practical use. It is based on a finite time horizon, not on an infinite time horizon like most tests. As it employs VAR analysis it is simple to compute and easily automated. We also show how it is possible to analyse a change of policy within a VAR framework. We use this methodology to examine the effect on fiscal sustainability o...

Analyzing Fiscal Sustainability

We study the implications of fiscal policy behavior for sovereign risk in a framework that develops a country’s fiscal limit, the point at which for economic or political reasons taxes and spending can no longer adjust to stabilize debt. A real business cycle model maps the economic environment—expected fiscal policy, the distribution of exogenous disturbances, and private agents’ behavior—into...

Fiscal Transparency and Fiscal Policy Outcomes in Oecd Countries

It is widely believed and often argued that budget process transparency has large, positive effects on fiscal performance. However, the evidence linking transparency and fiscal policy outcomes is far from compelling. We modify the "debt as precommitment" model of Alesina and Tabellini (1990) by allowing for budget inertia and reputational costs. These modest changes produce an equilibrium level...