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RESEARCH PRODUCT
The Impact of Fiscal Consolidation on Human Development
João Tovar JallesVitor CastroVitor CastroLuca AgnelloRicardo M. SousaRicardo M. Sousasubject
Latin AmericansRisk rating05 social sciencesGeography Planning and Development1. No povertyDeveloping countryDevelopmenthumanitiesHuman development (humanity)03 medical and health sciencesPolitics0302 clinical medicinePhysical capitalAusterity0502 economics and business8. Economic growthDevelopment economicsEconomics030212 general & internal medicine050207 economicsEmpirical evidencedescription
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. Copyright © 2017 John Wiley & Sons, Ltd.
| year | journal | country | edition | language |
|---|---|---|---|---|
| 2017-08-31 | Journal of International Development |