The Impact of Fiscal Consolidation on Human Development
- Autori: Agnello, L.; Castro, V.; Jalles, J.; Sousa, R.
- Anno di pubblicazione: 2018
- Tipologia: Articolo in rivista (Articolo in rivista)
- Parole Chiave: Economic and social determinants; Fiscal consolidation; Human development; Political; Risk rating; Geography, Planning and Development; Development3304 Education
- OA Link: http://hdl.handle.net/10447/243418
Abstract
We 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 detrimental to it.