Fiscal Structural Reform and Economic Activity : Public Spending and Private Effort
Fiscal Structural Reform and Economic Activity : Public Spending and Private Effort
复制标题
财政结构改革和经济活动:公共支出和私人努力
DOI:
10.1111/j.1468-5876.2010.00524.x
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发表时间:
2011
影响因子:
1.2
通讯作者:
Toshihiro
中科院分区:
文献类型:
--
作者:
Ihori;Toshihiro
This paper explores governments’ and private agents’ incentives to implement or postpone fiscal structural reform attempts. Both fiscal consolidation and fiscal reorganization often create spillover effects and thereby induce free-riding problems. It is thus important to cope with the free-riding behaviour of interest groups. It is often argued that in order to attain successful outcomes, a good macroeconomic situation is needed, since we expect positive income effects. In this paper, we first explain the dynamic aspects of insufficient fiscal consolidation due to free-riding problems in the framework of private provision of public goods. Then, using a static model between central and local governments, we examine the sign of income effects for reform attempts to pursue fiscal reorganization. It is shown that good economic circumstances do not necessarily enhance reform of reorganizing fiscal expenditures, although it could enhance fiscal reconstruction.