To shed further light on this issue in the context of emerging market economies, this paper uses Brazilian data to estimate the determinants of the current account in a smooth transition vector autoregressive (ST VAR) setting.
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Tax sharing and intergovernmental grants are two sub-central funding arrangements that are often difficult to disentangle. The dividing line is not drawn uniformly across OECD countries or across time, and rules established in National Accounts, Revenue Statistics and others give incomplete guidance. Moreover, tax sharing arrangements may differ according to how tax revenue is distributed across individual jurisdictions. In order to
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This paper describes the progress that has been made since 2006 in establishing statistical databases on tax autonomy and intergovernmental grants, aiming to better understand sub-central finance and intergovernmental fiscal relations. The paper is divided into two parts: a first part on taxing power of sub-central governments, and a second part on intergovernmental grants. Some of the work presented here is an update of earlier
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This paper analyses trends and driving forces in the revenue composition of sub-central government (SCG). Between 1995 and 2005 the share of SCG in total government spending increased significantly from 31 to 33 percent while the SCG tax share remained stable at around 17 percent, increasing SCG’s dependence on intergovernmental grants. While equal access to public services is the most common justification for such grants, the grant
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This pilot study presents indicators that assess sub-central government (SCG) spending power by policy area. Traditional indicators – such as the share of SCG in total government spending – are often misleading as they underestimate the impact of central government regulation on sub-central spending patterns. In order to gauge true spending power, a set of institutional indicators is established, based on a detailed assessment of
The aim of this paper is to analyze the relation between the volatility of government consumption and country size. The results are robust to different time and country samples, different econometric techniques and to several sets of control variables.
Euro Area entry calls for more fiscal flexibility to absorb cyclical shocks that cannot be dealt with by the common monetary policy. At the same time fiscal consolidation must not be put at risk, especially given rising ageing related costs.
On 19 September 2008, the OECD Committee on Fiscal Affairs released for comment a discussion draft on the Transfer Pricing Aspects of Business Restructurings<
This paper analyzes the effects of fiscal convergence on business cycle volatility and growth. Our empirical results are economically and statistically significant, and robust.
The aim of this paper is to assess the ability of social spending to smooth output shocks and to provide stabilization. The results show that overall social spending is able to smooth about 16 percent of a shock to GDP.