20 Years Experience with Medium Term Expenditure Frameworks
In the past twenty years more than 130 countries have adopted Medium-Term Expenditure Frameworks (MTEFs) as a tool for improving fiscal performance. This study empirically investigates the MTEFs’ impact on three key aspects of fiscal performance using a newly-collected dataset for 181 countries over the period 1990-2008. It finds i.a. that MTEFs strongly improve fiscal discipline and has a larger effect at more advanced MTEF levels. The paper also explores conditions that may affect the functioning of an MTEF, e.g. the presence of a fiscal responsibility act, political cohesion, democracy and technical assistance missions. | Abstract
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