In Search of Fiscal Space: A New Database

Year
2018
Type(s)
Author(s)
Franziska Ohnsorge, Naotaka Sugawara, and M. Ayhan Kose
Source
VoxEU Column, February 12, 2018
Url
https://cepr.org/voxeu/columns/search-fiscal-space-new-database

The availability of fiscal space has been at the centre of recent debates on the effective use of fiscal policy. This column introduces a new cross-country database of fiscal space indicators and applies it to the analysis of the evolution of fiscal space over the past quarter century and during oil price plunges. Fiscal space has weakened materially in many emerging and developing economies since the Global Crisis. Fiscal space tends to deteriorate in energy-exporting emerging and developing economies during oil price plunges but later improves, often because of procyclical fiscal tightening.

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