Accounting for One-Off Operations When Assessing Underlying Fiscal Positions

Posted: 1 Jun 2010

See all articles by Isabelle Joumard

Isabelle Joumard

Organization for Economic Co-Operation and Development (OECD) - Economics Department (ECO)

Makoto Minegishi

affiliation not provided to SSRN

Christophe Andre

Organization for Economic Co-Operation and Development (OECD) - Economics Department (ECO)

Chantal Nicq

Organization for Economic Co-Operation and Development (OECD) - Policy Studies Branch

Robert Price

Organization for Economic Co-Operation and Development (OECD) - Economics Department (ECO)

Date Written: December 1, 2008

Abstract

Frequent recourse to large one-off operations in a number of OECD countries has undermined the accuracy of cyclically adjusted fiscal balances as a measure of both the sustainability of public finance and the fiscal stance. This paper first provides detailed information on the nature and amount of these one-offs for 9 OECD countries. The paper then presents a new indicator – the “underlying” fiscal balance – which effectively eliminates the impact of one-offs and cyclical developments. One-offs are derived as the deviations from trend in net capital transfers, i.e. from widely available national account data. This approach provides a consistent treatment of one-offs both across countries and over time, avoiding the potential information biases which could result from an individual identification of one-offs.

Keywords: One-off fiscal operations, fiscal balances, cyclically adjusted fiscal balances, underlying fiscal

JEL Classification: E62, H3, H6

Suggested Citation

Joumard, Isabelle and Minegishi, Makoto and Andre, Christophe and Nicq, Chantal and Price, Robert, Accounting for One-Off Operations When Assessing Underlying Fiscal Positions (December 1, 2008). Available at SSRN: https://ssrn.com/abstract=1618204

Isabelle Joumard

Organization for Economic Co-Operation and Development (OECD) - Economics Department (ECO) ( email )

2 rue Andre Pascal
Paris Cedex 16, MO 63108
France

Makoto Minegishi

affiliation not provided to SSRN ( email )

Christophe Andre (Contact Author)

Organization for Economic Co-Operation and Development (OECD) - Economics Department (ECO) ( email )

2 rue Andre Pascal
Paris Cedex 16, MO 63108
France

Chantal Nicq

Organization for Economic Co-Operation and Development (OECD) - Policy Studies Branch ( email )

Paris
France

Robert Price

Organization for Economic Co-Operation and Development (OECD) - Economics Department (ECO) ( email )

2 rue Andre Pascal
Paris Cedex 16, MO 63108
France

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