Fiscal Space: Concept, Measurement, and Policy Implications

4 Pages Posted: 29 Nov 2018 Last revised: 29 Mar 2019

See all articles by M. Ayhan Kose

M. Ayhan Kose

Development Prospects Group at the World Bank

Franziska Ohnsorge

World Bank

Naotaka Sugawara

World Bank

Date Written: November 1, 2018

Abstract

Effective fiscal policy depends on the amount of budget resources available to raise spending or lower taxes without jeopardizing fiscal sustainability. This resource availability is often called fiscal space. Since the global financial crisis, fiscal space in emerging market and developingeconomies has narrowed. This makes these economies more vulnerable to sudden spikes in financing costs and limits their ability to counteract adverse shocks.

Keywords: Public Sector Economics, Public Finance Decentralization and Poverty Reduction, Economic Adjustment and Lending, Macro-Fiscal Policy, Macroeconomics and Economic Growth, Economic Policy, Institutions and Governance, Fiscal & Monetary Policy, Labor Markets

Suggested Citation

Kose, M. Ayhan and Ohnsorge, Franziska and Sugawara, Naotaka, Fiscal Space: Concept, Measurement, and Policy Implications (November 1, 2018). World Bank Research and Policy Briefs No. 132195. Available at SSRN: https://ssrn.com/abstract=3291569

M. Ayhan Kose (Contact Author)

Development Prospects Group at the World Bank ( email )

1818 H Street, NW
Washington, DC 20433
United States

Franziska Ohnsorge

World Bank ( email )

1818 H Street, NW
Washington, DC 20433
United States

Naotaka Sugawara

World Bank ( email )

1818 H Street, NW
Washington, DC 20433
United States

Register to save articles to
your library

Register

Paper statistics

Downloads
55
Abstract Views
235
rank
375,124
PlumX Metrics