Quantitative Approaches To Fiscal Sustainability Analysis : A New World Bank Tool Applied To Turkey

Fiscal sustainability analysis (FSA) is an important component of macroeconomic analysis. The authors review various quantitative approaches to FSA with a major objective to bring these approaches together and to present a user-friendly tool for FSA that reflects modern developments. They combine a...

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Main Author: Budina, Nina
Other Authors: van Wijnbergen, Sweder
Format: eBook
Language:English
Published: Washington, D.C The World Bank 2007, 2007
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Online Access:
Collection: World Bank E-Library Archive - Collection details see MPG.ReNa
Summary:Fiscal sustainability analysis (FSA) is an important component of macroeconomic analysis. The authors review various quantitative approaches to FSA with a major objective to bring these approaches together and to present a user-friendly tool for FSA that reflects modern developments. They combine a dynamic simulations approach with a simplified version of the steady-state consistency approach. They also incorporate two different methods to deal with uncertainty: user-defined stress tests and stochastic simulations. The tool goes further by evaluating the required fiscal adjustment as a consequence of the stochastic realizations of the exogenous variables. Furthermore, the fiscal sustainability tool incorporates an endogenous debt feedback rule for the primary surplus, a fiscal policy reaction function. Besides outlining the theoretical framework, the authors also present a case study for Turkey
Physical Description:Online-Ressource (1 online resource (41 p.))