| 000 -LEADER |
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| fixed length control field |
01292pab a2200181 454500 |
| 008 - FIXED-LENGTH DATA ELEMENTS--GENERAL INFORMATION |
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180718b2004 xxu||||| |||| 00| 0 eng d |
| 100 ## - MAIN ENTRY--PERSONAL NAME |
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| Personal name |
Beetsma, Roel M.W.J. |
| 245 ## - TITLE STATEMENT |
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| Title |
Reconcilling stability and growth: smart pacts and structural reforms |
| 260 ## - PUBLICATION, DISTRIBUTION, ETC. |
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| Date of publication, distribution, etc. |
2004 |
| 300 ## - PHYSICAL DESCRIPTION |
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| Extent |
p.431-56. |
| 520 ## - SUMMARY, ETC. |
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| Summary, etc. |
This paper analyzes the decision by a government facing electoral uncertainty to implement structural reforms in the presence of fiscal restraints similar to the Stability and Growth Pact. To the extent that the reform package entails budgetary costs, the model shows that a fiscal pact erodes incentives to carry out structural reforms, sacrificing future growth for present stability. Although the pact effectively addresses the deficit bias resulting from electoral uncertainty, the induced reduction in reforms implies ambiguous welfare effects. We conclude that a "smart" (i.e., welfare-improving) pact should take into account the budgetary effects of structural reforms. Our conclusions are consistent with the actual principles guiding the implementation of the Stability and Growth Pact. - Reproduced. |
| 650 ## - SUBJECT ADDED ENTRY--TOPICAL TERM |
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| Topical term or geographic name entry element |
Structural adjustment |
| 650 ## - SUBJECT ADDED ENTRY--TOPICAL TERM |
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| Topical term or geographic name entry element |
Economic growth |
| 650 ## - SUBJECT ADDED ENTRY--TOPICAL TERM |
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| Topical term or geographic name entry element |
Economic reform |
| 700 ## - ADDED ENTRY--PERSONAL NAME |
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| Personal name |
Debrun, Xavier |
| 773 ## - HOST ITEM ENTRY |
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| Main entry heading |
IMF Staff Papers |
| 909 ## - |
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| -- |
64262 |
