FISCAL CONSOLIDATION AND DECENTRALISATION: A TALE OF TWO TIERS



3.5 Episodes of Fiscal Consolidation and some initial analysis

Table 1 lists the years in which we have identified consolidation attempts at both the general
government level and for the sub-central tier.

Table 1: Chronology of Fiscal Consolidation Attempts

Year of
Attempted
Consolidation at
General Govt
________level________

Year of
Attempted
Consolidation at
sub-central tier

Of which,
collaboration
between tiers

Year of successful
consolidation
attempt at
General Govt.
_________level_________

Australia

1982, 96 & 98

1998

1998

1996 & 98

Austria

1984

1977, 80 & 88

-

Belgium

1982, 85, 86 & 94

1982, 83, 84, 85,
91 & 95

1982, 85 & 94/5

1994

Canada

1982, 87, 95, 96 &

97

1982, 87, 93 & 94

1982, 87 & 94/5

1996 & 97

Denmark

1983, 84 & 86

1983

1983/4

1983 & 84

Finland

1976, 81, 84, 88 &

93

1975, 88 & 89

1975/6 & 88/9

-

France

87 & 97

1980 & 86

1986/7

-

Germany

1976, 77 & 82

1976, 77 & 98

1976,77

-

Ireland

1976, 83, 84, 87,
88 & 89

1976, 77, 83 & 87

1976,77,83,87

1987, 88 & 89

Netherlands

1983, 85, 88, 91 &

93

1976, 81, 82, 83,
88 & 89

1983, 88/9

-

Norway

1981, 83, 89, 90 &

94

1981, 90 & 94

1981, 90 & 94

1981 & 94

Spain

1985, 86 & 97

1983, 87 & 92

1986/7

1997

Sweden

1981, 82, 83, 84,
87, 92, 94, 95 &
96

1995, 97 & 98

1995 & 96/97

1984, 87 & 96

UK

1976, 77, 87, 88,
96, 97 & 98

1975, 76, 77, 81 &

92

1976 & 77

1976, 77, 87, 88,
97 & 98

USA

-

-

-

-

Total

61

47

27

22

The dates in the first column are broadly similar to those reported in Alesina and Perotti
[1995], allowing for the difference in our sample period and for minor revisions to the
published data. It is also useful to note that a number of episodes that have been discussed at
length in the existing literature are represented, including the UK in the late 1990s, and
Denmark and Ireland in the late 1980s, see, for example Dornbusch [1989], Giavazzi and
Pagano [1990], Bradley and Whelan [1997], Lambertini and Tavares [2000] and Hjelm and
Johansson [2002]. In the fourth column we indicate the dates of successful consolidation



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