Options for fiscal consolidation in the United Kingdom /

Options for fiscal consolidation in the United Kingdom /

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Bibliographic Details
Author / Creator:	Botman, Dennis (Dennis Petrus Johannes), author.
Imprint:	[Washington, D.C.] : International Monetary Fund, European Dept. and Fiscal Affairs Dept., 2006.
Description:	1 online resource (22 pages) : illustrations
Language:	English
Series:	IMF working paper, 2227-8885 ; WP/06/89 IMF working paper ; WP/06/89.
Subject:	Fiscal policy -- Great Britain -- Econometric models. Finance, Public -- Great Britain -- Econometric models. Finance, Public -- Econometric models. Fiscal policy -- Econometric models. Great Britain.
Format:	E-Resource Book
URL for this record:	http://pi.lib.uchicago.edu/1001/cat/bib/13510829

Hidden Bibliographic Details
Other authors / contributors:	Honjo, Keiko, author. International Monetary Fund. European Department. International Monetary Fund. Fiscal Affairs Department.
ISBN:	1283516136 9781283516136 9781451908848 1451908849 1462352839 9781462352838 1452750149 9781452750149 9786613828583 6613828580
Digital file characteristics:	text file
Notes:	Includes bibliographical references. Restrictions unspecified Electronic reproduction. [Place of publication not identified] : HathiTrust Digital Library, 2010. Master and use copy. Digital master created according to Benchmark for Faithful Digital Reproductions of Monographs and Serials, Version 1. Digital Library Federation, December 2002. http://purl.oclc.org/DLF/benchrepro0212 English. digitized 2010 HathiTrust Digital Library committed to preserve Print version record.
Summary:	This paper examines the macroeconomic effects of different timing and composition of fiscal adjustment in the United Kingdom using the IMF's Global Fiscal Model. Early consolidation dampens aggregate demand in the short term, but increases output in the long term as smaller primary surpluses are needed as a result of lower interest payments. Reducing government transfers or current government spending provides larger gains than increasing taxes, in particular compared to raising corporate or personal income taxes. We show that these conclusions are robust under alternative behavioral assumptions and parameterizations. A reduction in global saving would make early consolidation more urgent from both cyclical and long-term perspectives. Finally, we show that tax reform aimed at increasing incentives to save could provide support to fiscal consolidation measures.
Other form:	Print version: Botman, Dennis (Dennis Petrus Johannes). Options for fiscal consolidation in the United Kingdom. [Washington, D.C.] : International Monetary Fund, European Dept. and Fiscal Affairs Dept., 2006
Standard no.:	10.5089/9781451908848.001