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The impact of fiscal consolidations on human development
journal contribution
posted on 2017-07-04, 13:16 authored by Luca Agnello, Vitor CastroVitor Castro, Joao Tovar Jalles, Ricardo M. SousaWe find that fiscal austerity is associated with a reduction of human development standards, with the negative effect being particularly severe in the case of spending-driven consolidation episodes. Fiscal adjustments are especially damaging for human development in developing countries (namely, African and Latin American countries). Additionally, the empirical evidence shows that: (i) government stability is a crucial institutional determinant of human development; and (ii) while investment in physical capital can boost human development, government consumption and inflation are detrimentalto it.
Funding
This work has been financed by Operational Programme for Competitiveness Factors -COMPETE and by National Funds through the FCT -Portuguese Foundation for Science and Technology within the remit of the project “FCOMP-01-0124-FEDER-037268 (PEst-C/EGE/UI3182/2013).” Castro also wishes to thank the financial support provided by the Portuguese Foundation for Science and Technology under the research grant SFRH/BSAB/113588/2015 (partially funded by COMPETE, QREN and FEDER).
History
School
- Business and Economics
Department
- Economics
Published in
Journal of International DevelopmentCitation
AGNELLO, L. ...et al., 2017. The impact of fiscal consolidations on human development. Journal of International Development, 30 (3), pp.399-429.Publisher
© WileyVersion
- AM (Accepted Manuscript)
Publisher statement
This is the peer reviewed version of the following article: AGNELLO, L. ...et al., 2017. The impact of fiscal consolidations on human development. Journal of International Development, 30 (3), pp.399-429, which has been published in final form at https://doi.org/10.1002/jid.3309. This article may be used for non-commercial purposes in accordance with Wiley Terms and Conditions for Use of Self-Archived Versions.Acceptance date
2017-05-31Publication date
2017ISSN
0954-1748eISSN
1099-1328Publisher version
Language
- en