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This paper uses new data on fiscal transparency for a cross-section of countries; these data possess several advantages. First, the data are based on in-depth reports using a standardized methodology and protocol. Second, this study covers 82 countries, more than previous comparable studies. Third, the fiscal measures used have been obtained with the collaboration of government authorities, which makes them particularly reliable. Finally, the data collection has been undertaken at a high level. These new data permit examination of a relevant but little-studied issue, the role of institutional quality in a country’s fiscal transparency. It is shown that there is in fact a causal relationship between institutions and transparency. The findings are robust to changes in specification and a host of transparency sub-measures.
This edition of IDEA is based on a new IDB book entitled Who Decides Social Policy?. This seminal study tries to better understand why social and economic programs are not more effective in Latin America and the Caribbean by supplementing political economy analysis with a new technique--Social Network Analysis (SNA)--that provides a detailed view of the informal connections between individuals and ... (View publication)
Why do some social programs succeed while others do not? Because public policies are not designed and implemented in a vacuum: they are an integral part of the policymaking process. This book endeavors to understand how the decision-making process works in practice through a combined analysis of social networks and political economy. Use and application of these instruments make it possible to exa ... (View publication)
This paper studies the cyclical properties of two key expenditure categories (current and public investment spending) during the different phases of the business cycle (good times and bad times). Anecdotal evidence suggests that policymakers usually cannot resist the temptation of spending more on current expenditure in good times, but only pick capital expenditures to adjust during bad times. ... (View publication)
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