000			03264cam a22004334a 4500
001			4365
003			The World Bank
006			m d
007			cr cn|||||||||
008			020129s2007 dcu i001 0 eng
024	8		_a10.1596/1813-9450-4365
035			_a(The World Bank)4365
100	1		_aPerotti, Roberto
245	1	0	_aFiscal Policy in Developing Countries _h[electronic resource] : _bA Framework and Some Questions / _cPerotti, Roberto
260			_aWashington, D.C., _bThe World Bank, _c2007
300			_a1 online resource (46 p.)
520	3		_aThis paper surveys fiscal policy in developing countries from the point of view of long-run growth. The first section reviews existing methodologies to estimate the effects of fiscal policy shocks and of systematic fiscal policy, with time series or with cross-sectional methods, and their applicability to developing countries. The second section surveys optimal fiscal policy in developing countries, by considering the role of the intertemporal government budget, and sustainability and solvency. It also reviews the fuzzy debate on "fiscal space" and "macroeconomic space" - and the usefulness (or lack thereof) of these terms for policy analysis. The third section asks what theory tells us about the optimal cyclical behavior of fiscal policy in developing countries. It shows that it very much depends on the assumptions about the interactions between credit market imperfections at the individual, firms, or government level, and on the supply of external funds to the country. Different sets of assumptions lead to different implications about optimal cyclical behavior. The available evidence on the cyclical behavior of fiscal policy, and possible reasons for the observed prevalence of a procyclical behavior in developing countries, is also reviewed. If one agrees that fiscal policy is indeed less countercyclical than we think is optimal, the issue is how to correct the problem. One obvious question is why government do not self-insure, i.e. why they do not accumulate assets in upturns and decumulate them in downturns. This leads to the analysis of fiscal rules and stabilization funds, in the fourth section. The last section concludes with what the author considers important research and policy questions in each part.
650		4	_aDebt Markets
650		4	_aEconomic Stabilization
650		4	_aEconomic Theory and Research
650		4	_aFinance and Financial Sector Development
650		4	_aFiscal Adjustment
650		4	_aFiscal policies
650		4	_aFiscal Policy
650		4	_aFiscal rules
650		4	_aGovernment budget
650		4	_aGovernment consumption
650		4	_aGovernment spending
650		4	_aMacroeconomics and Economic Growth
650		4	_aMonetary authorities
650		4	_aPublic sector
650		4	_aPublic Sector Expenditure Analysis and Management
650		4	_aSocial security
650		4	_aStabilization policies
700	1		_aPerotti, Roberto
776	1	8	_aPrint version: _iPerotti, Roberto. _tFiscal Policy in Developing Countries. _dWashington, D.C., The World Bank, 2007
830		0	_aPolicy research working papers.
830		0	_aWorld Bank e-Library.
856	4	0	_uhttp://elibrary.worldbank.org/doi/book/10.1596/1813-9450-4365
999			_c140125 _d140125