Government Subsidies: Concepts, International Trends, and Reform Options

58 Pages Posted: 15 Feb 2006

See all articles by Benedict Clements

Benedict Clements

International Monetary Fund (IMF) - African Department

Réjane Hugounenq

affiliation not provided to SSRN

Gerd Schwartz

International Monetary Fund (IMF) - Fiscal Affairs Department

Date Written: September 1995

Abstract

This paper addresses the problems of defining and measuring government subsidies, examines why and how government subsidies are used as a fiscal policy tool, assesses their economic effects, appraises international empirical evidence on government subsidies, and offers options for their reform. Recent international trends in government subsidy expenditure are analyzed for the 16-year period from 1975 to 1990, using general government subsidy data for 60 countries from the System of National Accounts (SNA) and central government expenditure on subsidies and other current transfers for 68 countries from Government Finance Statistics (GFS). The paper reviews major policy options for subsidy reform, focusing on ways to improve the cost-effectiveness of subsidy programs.

JEL Classification: H2, H22

Suggested Citation

Clements, Benedict and Hugounenq, Réjane and Schwartz, Gerd, Government Subsidies: Concepts, International Trends, and Reform Options (September 1995). IMF Working Paper No. 95/91, Available at SSRN: https://ssrn.com/abstract=883238

Benedict Clements (Contact Author)

International Monetary Fund (IMF) - African Department ( email )

1700 19th Street, NW
Washington, DC 20431
United States

Réjane Hugounenq

affiliation not provided to SSRN

No Address Available

Gerd Schwartz

International Monetary Fund (IMF) - Fiscal Affairs Department ( email )

700 19th Street, NW
Washington, DC 20431
United States

Here is the Coronavirus
related research on SSRN

Paper statistics

Downloads
514
Abstract Views
1,572
rank
59,942
PlumX Metrics