01784cas a2200253 a 4500 AALejournalIMF000248 230101c9999 xx r poo 0 0eng d 5.00 USD 9781451960433 1018-5941 BD-DhAAL BD-DhAAL Alesina, Alberto. Fiscal Adjustments in OECD Countries : Composition and Macroeconomic Effects / Alberto Alesina, Roberto Perotti. Washington, D.C. : International Monetary Fund, 1996. 1 online resource (52 pages) IMF Working Papers <strong>Off-Campus Access:</strong> No User ID or Password Required <strong>On-Campus Access:</strong> No User ID or Password Required Electronic access restricted to authorized BRAC University faculty, staff and students This paper studies how the composition of fiscal adjustments influences their likelihood of 'success', defined as a long lasting deficit reduction, and their macroeconomic consequences. We find that fiscal adjustments which rely primarily on spending cuts on transfers and the government wage bill have a better chance of being successful and are expansionary. On the contrary fiscal adjustments which rely primarily on tax increases and cuts in public investment tend not to last and are contractionary. We discuss alterative explanations for these findings by studying both a full sample of OECD countries and by focusing on three case studies: Denmark, Ireland and Italy. Mode of access: Internet Perotti, Roberto. IMF Working Papers; Working Paper ; No. 1996/070 Full text available on IMF http://elibrary.imf.org/view/journals/001/1996/070/001.1996.issue-070-en.xml IMF e-Library