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The OECD monitors fiscal policies. Assessments shape the macroeconomic projections and policy recommendations. Work also examines the longer-term debt dynamics and sustainability of public finances, the role of fiscal policy in a monetary union and the interaction between fiscal and monetary policy.
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16-Apr-2008
This paper develops a differential game of tax avoidance by modelling the interactions between a taxpayer and the tax authority. This framework is particularly useful for explicitly modelling situations of conflict. The solution to the game is a non co operative Nash that depends on the resources that need to be used by the tax authority to enforce legislation and the cost to be borne by the taxpayer in tax compliance, provided that the curvature of the utility functions is bounded.
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21-Apr-2008
Compliance with the structural budget surplus rule, which has been in place since 2001, has allowed the government to maintain a counter cyclical fiscal stance in an environment of rising copper prices, while delivering a gradual reduction in public indebtedness. Monetary policy is conducted within a framework that combines inflation targeting with exchange rate flexibility. This paper relates to the 2007 Economic Survey of Chile (www.oecd.org/eco/surveys/chile).
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02-Apr-2008
The supply side framework and related measures of output and unemployment gaps play a leading role in the OECD analysis of short term conjunctural conditions and long term determinants of growth. To allow such diagnoses for Poland, this paper develops a comprehensive supply block in accordance with the OECD approach.
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12-Mar-2008
This paper examines varies areas of India´s fiscal policy, in particular fiscal discipline, the structure of government spending, the tax system and fiscal federalism. It describes reforms over the past decades which, as part of the overall economic reform agenda, helped lifting the Indian economy to a higher growth path. It also discusses where further reforms are desirable to further reduce economic distortions and improve the provision of public services. This Working Paper relates to the 2007 OECD Economic Survey of India (www.oecd.org/eco/surveys/india).
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19-Feb-2008
After several years of strong growth, the economy shows signs of overheating. This should be counteracted via prudent fiscal policy and labour market reforms. Boosting employment is also vital given Denmark's ambitious, but costly, welfare priorities in areas like healthcare. Finally, reducing the distortions from high marginal tax rates must be a key priority, this report argues.
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