MTEFs and Fiscal Performance : Panel Data Evidence

In the last two decades more than 120 countries have adopted a version of a Medium-Term Expenditure Framework (MTEF). These are budget institutions whose rationale it is to enable the central government to make credible multi-year fiscal commitment...

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Bibliographic Details
Main Authors:	Grigoli, Francesco, Mills, Zachary, Verhoeven, Marijn, Vlaicu, Razvan
Format:	Policy Research Working Paper
Language:	English en_US
Published:	World Bank, Washington, DC 2013
Subjects:	ADB ADVERSE CONSEQUENCES ANNUAL BUDGET ANNUAL BUDGETING ANNUAL BUDGETS ARTICLE BANKING SECTOR BANKING SECTOR DEVELOPMENT BOND BUDGET AGGREGATES BUDGET ALLOCATIONS BUDGET AMENDMENTS BUDGET BALANCE BUDGET CIRCULARS BUDGET DOCUMENTS BUDGET FRAMEWORK BUDGET INSTITUTIONS BUDGET PLANNING BUDGET PROCESS BUDGET REQUIREMENT BUDGET RESOURCES BUDGET RULES BUDGETARY FRAMEWORK BUDGETARY INSTITUTIONS BUDGETARY OUTCOMES BUDGETARY PROCESSES BUDGETARY TARGETS BUSINESS CYCLE CENTRAL BANK CENTRAL GOVERNMENT COMMITMENT DEVICES COSTS OF GOVERNMENT CREATIVE ACCOUNTING CREDIBILITY DATA ANALYSIS DATA AVAILABILITY DATA COLLECTION DEBT DEBT SUSTAINABILITY DEBTS DEVELOPING COUNTRIES DEVELOPMENT BANK DISBURSEMENTS DUMMY VARIABLE E-MAIL ECONOMETRICS ECONOMIC DEVELOPMENT ECONOMIC GROWTH ECONOMIC POLICY EDUCATION SERVICES EDUCATION SPENDING EMERGING MARKET EMERGING MARKET ECONOMIES EMPLOYMENT ENTITLEMENTS ESP EUROPEAN CENTRAL BANK EXPENDITURE CEILINGS EXPENDITURE OBJECTIVES EXPENDITURE PLANS FACE VALUE FINANCIAL ACCOUNTABILITY FINANCIAL CRISIS FINANCIAL DEVELOPMENT FISCAL AFFAIRS FISCAL COMMITMENTS FISCAL DISCIPLINE FISCAL FRAMEWORKS FISCAL INSTITUTIONS FISCAL PERFORMANCE FISCAL POLICY FISCAL REFORMS FISCAL RULES FISCAL STABILITY FORWARD ESTIMATES GEOGRAPHIC REGION GEOGRAPHIC REGIONS GOVERNMENT BORROWING GOVERNMENT POLICIES GOVERNMENT POLICY GOVERNMENT SPENDING GROWTH RATE HEALTH CARE HEALTH EXPENDITURE HEALTH SECTOR HEALTH SPENDING HUMAN DEVELOPMENT ICT INFORMATION GAPS INNOVATION INSTITUTION INSTRUMENT INTEREST PAYMENTS INTERNATIONAL BANK INTERNATIONAL DEVELOPMENT ISOLATION LAWS LIFE EXPECTANCY MACROECONOMIC VOLATILITY MARKET ECONOMIES MEDIUM TERM EXPENDITURE MEDIUM TERM EXPENDITURE FRAMEWORKS MEDIUM-TERM EXPENDITURE MEDIUM-TERM EXPENDITURE FRAMEWORK MEDIUM-TERM EXPENDITURE FRAMEWORKS MEDIUM-TERM FISCAL FRAMEWORK MEDIUM-TERM PERSPECTIVE MEDIUM-TERM PLANNING MICRO DATA MINISTRY OF FINANCE MONETARY UNION NATIONAL BUDGET NPL OPEN ACCESS OUTCOME TARGETS PERFORMANCE FRAMEWORK PERFORMANCE TARGETS POLITICAL ECONOMY POLITICIANS POVERTY REDUCTION POVERTY REDUCTION SUPPORT PROGRAM OBJECTIVES PROGRAM PERFORMANCE PROGRAMS PUBLIC BUDGETING PUBLIC ECONOMICS PUBLIC EDUCATION PUBLIC EXPENDITURE PUBLIC EXPENDITURE MANAGEMENT PUBLIC FINANCE PUBLIC FINANCIAL MANAGEMENT PUBLIC GOODS PUBLIC HEALTH PUBLIC INVESTMENT PUBLIC POLICY PUBLIC SECTOR PURCHASING POWER REALLOCATIONS REFORM BUDGET INSTITUTIONS RESOURCE ALLOCATION RESOURCE AVAILABILITY RESULT RESULTS REVENUE GROWTH SECTORAL EXPENDITURE SOCIAL INFRASTRUCTURE SOCIAL OUTCOMES SOCIAL RETURNS STRATEGIC PRIORITIES SUSTAINABILITY ANALYSIS TAX TAXONOMY TRANSACTION TRANSPARENCY USES WALKING WASTE WEB
Online Access:	http://documents.worldbank.org/curated/en/2012/09/16698632/mtefs-fiscal-performance-panel-data-evidence http://hdl.handle.net/10986/12027

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Summary:	In the last two decades more than 120 countries have adopted a version of a Medium-Term Expenditure Framework (MTEF). These are budget institutions whose rationale it is to enable the central government to make credible multi-year fiscal commitments. This paper analyzes a newly-collected dataset of worldwide MTEF adoptions during 1990-2008. It exploits within-country variation in MTEF adoption in a dynamic panel framework to estimate their impacts. The analysis finds that MTEFs strongly improve fiscal discipline, with more advanced MTEF phases having a larger impact. Higher-phase MTEFs also improve allocative efficiency. Only top-phase MTEFs have a significantly positive effect on technical efficiency.

MTEFs and Fiscal Performance : Panel Data Evidence

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