Expenditure Reform in Industrialised Countries: A Case-Study Approach

50 Pages Posted: 11 Dec 2007

See all articles by Sebastian Hauptmeier

Sebastian Hauptmeier

European Central Bank (ECB) - Directorate General Economics

Martin Heipertz

European Central Bank - International and European Relations

Ludger Schuknecht

European Central Bank (ECB)

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Abstract

This study examines reforms of public expenditure in industrialised countries over the past two decades. We distinguish ambitious and timid reformers and analyse in detail reform experiences in eight case studies of ambitious reform episodes. We find that ambitious reform countries reduce spending on transfers, subsidies and public consumption. Such expenditure retrenchment is also typically part of a comprehensive reform package that includes improvements in fiscal institutions as well as structural and other macroeconomic reforms. The study finds that ambitious expenditure retrenchment and reform coincides with large improvements in fiscal and economic growth indicators.

Suggested Citation

Hauptmeier, Sebastian and Heipertz, Martin and Schuknecht, Ludger, Expenditure Reform in Industrialised Countries: A Case-Study Approach. Fiscal Studies, Vol. 28, No. 3, 2007. Available at SSRN: https://ssrn.com/abstract=1061835 or http://dx.doi.org/10.1111/j.1475-5890.2007.00058.x

Sebastian Hauptmeier (Contact Author)

European Central Bank (ECB) - Directorate General Economics ( email )

Kaiserstrasse 29
D-60311 Frankfurt am Main
Germany

Martin Heipertz

European Central Bank - International and European Relations ( email )

Sonnemannstrasse 22
Frankfurt am Main, 60314
Germany

Ludger Schuknecht

European Central Bank (ECB) ( email )

Sonnemannstrasse 22
Frankfurt am Main, 60314
Germany
+49 69 1344 6494 (Phone)
+49 69 1344 7809 (Fax)

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