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 |
Year of |
Of which, |
Year of successful | |
|
Australia |
1982, 96 & 98 |
1998 |
1998 |
1996 & 98 |
|
Austria |
1984 |
1977, 80 & 88 |
- | |
|
Belgium |
1982, 85, 86 & 94 |
1982, 83, 84, 85, |
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, |
1976, 77, 83 & 87 |
1976,77,83,87 |
1987, 88 & 89 |
|
Netherlands |
1983, 85, 88, 91 & 93 |
1976, 81, 82, 83, |
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, |
1995, 97 & 98 |
1995 & 96/97 |
1984, 87 & 96 |
|
UK |
1976, 77, 87, 88, |
1975, 76, 77, 81 & 92 |
1976 & 77 |
1976, 77, 87, 88, |
|
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