Inflation and the monetary financing of deficits are analyzed in a model in which the deficit is constrained to be less than a given fraction of a measure of aggregate market activity. Depending on parameter values, the model can have multiple steady states. Under adaptive learning with heterogeneous learning rules, there is convergence to a subset of these steady states. In some cases, a high-...

This paper uses a large panel data set to examine the relation between elections and fiscal policy. We find evidence of political budget cycles in both developed and developing countries: government spending increases before elections while revenues fall, leading to a larger deficit in election years. We demonstrate that political budget cycles are much larger in developing countries than in de...

macroeconomic stabilitv is a major prerequisite fo r real economic growth. in th is study in order to allalyse tile empirical relation ship between macroeconomic instability and per capita real growth, a regression model has been specifi ed for tile iranian economy . in this equation , lour variables including hudget deficit as a ratio to gdp. intlation rate , percenltlge change in tile rea! ex...

Botswana entered the COVID-19 crisis with larger buffers than most countries, but significantly less in past. The country was contending structural challenges, persistent negative external shocks and delays adjustment that had already caused a significant weakening of international reserves coverage fiscal position amid high unemployment. pandemic exacerbated these challenges causing sharp GDP ...

Governments are present-biased toward spending. Fiscal rules are deficit limits that trade off commitment to not overspend and flexibility to react to shocks. We compare centralized rules — chosen jointly by all countries — to decentralized rules. If governments’ present bias is small, centralized rules are tighter than decentralized rules: individual countries do not internalize the redistribu...

A growing stream of accounting research suggests that managers use the data reported in a company’s financial reports to make real investment decisions. We extend this idea to the public sector, investigating whether the employment decisions made by governmental entities are influenced by the reporting rules for public pensions and the discretion pension managers use in implementing these rules...

This analysis challenges the medical malpractice findings of the National Commission on Fiscal Responsibility and Reform (“Commission”) in its December 2010 report “The Moment of Truth.” Specifically, we reject its assertion in section 3.3.12 that taking away the legal rights of injured patients would “save $2 billion in 2015, $17 billion through 2020.” We find that the Commission’s proposal wo...

This paper presents a framework for assessing the fiscal condition index (FCI) and develops a concept to assess fiscal condition of governments and implements it into Iran government as an oil exporting country. The concept consists of four dimensions ­-revenue, expenditure, budget balance, and debt structure-and each dimension has its own indicators. There are seven indicators examined namely ...

For a country with over 200 million people and severe infrastructural deficit, the reality is that Nigeria has no wherewithal to meet demand for fixing its transport alone, without external financing technical assistance. With rising constraint on public resources fiscal space, it obvious government alone cannot provide necessary address deficit in like Nigeria. Hence, importance of China’s int...