Challenges in Measuring the Effectiveness of Legislative Budget Offices
14 Pages Posted: 8 Oct 2016
Date Written: October 1, 2016
Do Legislative Budget Offices (LBOs) actually serve the purpose(s) that they are built for? How are we to measure their effectiveness? This discussion paper assesses the difficulties that arise in measuring the success of LBOs through various perspectives including, but not limited to, obstacles in assessing the impact on fiscal performance, public perceptions, benchmarks, counterfactual approaches, sovereign ratings, and cross-country samples of LBOs. It finds that there are limitations in the reliability of each metric/approach, and it thereby highlights the need for a greater research that contextualises the importance of LBOs in the budget process, their measurement limitations notwithstanding.
Keywords: Legislative Budget Offices; Governance; Oversight; Fiscal Policy; Macroeconomics
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