PlumX Metrics
SSRN
Embed PlumX Metrics

Fiscal Crises

SSRN, ISSN: 1556-5068
2017
  • 4
    Citations
  • 1,127
    Usage
  • 0
    Captures
  • 0
    Mentions
  • 0
    Social Media
Metric Options:   Counts1 Year3 Year

Metrics Details

  • Citations
    4
    • Citation Indexes
      4
  • Usage
    1,127
    • Abstract Views
      995
    • Downloads
      132
  • Ratings
    • Download Rank
      434,134

Article Description

A key objective of fiscal policy is to maintain the sustainability of public finances and avoid crises. Remarkably, there is very limited analysis on fiscal crises. This paper presents a new database of fiscal crises covering different country groups, including low-income developing countries (LIDCs) that have been mostly ignored in the past. Countries faced on average two crises since 1970, with the highest frequency in LIDCs and lowest in advanced economies. The data sheds some light on policies and economic dynamics around crises. LIDCs, which are usually seen as more vulnerable to shocks, appear to suffer the least in crisis periods. Surprisingly, advanced economies face greater turbulence (growth declines sharply in the first two years of the crisis), with half of them experiencing economic contractions. Fiscal policy is usually procyclical as countries curtail expenditure growth when economic activity weakens. We also find that the decline in economic growth is magnified if accompanied by a financial crisis.

Bibliographic Details

Kerstin Gerling; Paulo A. Medas; Tigran Poghosyan; Juan Farah-Yacoub; Yizhi Xu

Elsevier BV

Multidisciplinary; Economic growth; Financial crises; fiscal crisis; sovereign debt default; twin crises; Deficit; Studies of Particular Policy Episodes; General Outlook and Conditions

Provide Feedback

Have ideas for a new metric? Would you like to see something else here?Let us know