Franklin

Fiscal Transparency and the Performance of Government Financial Assets [electronic resource]

Edition:
Seiferling, Mike ; Tareq, Shamsuddin ed.
Publication:
Washington, D.C. : International Monetary Fund, 20150122.
Series:
IMF eLibrary
IMF Working Papers: Working Paper No. 15/9
IMF Working Papers: Working Paper No. 15/9
Format/Description:
Book
1 online resource (25 p.)
Local subjects:
Deficit.
Financial assets.
Fiscal transparency.
fiscal transparency, government portfolios of equities and investment fund shares.
General.
Government finance statistics.
holding gains on government financial assets.
public finance.
stock-flow adjustments.
Summary:
Stock-flow adjustments are typically measured as the difference between changes in gross debt and deficits. These are interpreted as a proxy for unexplained fiscal discrepancies, and often associated with a lack of fiscal transparency. However, such measures fail to capture the role of financial assets and valuation changes and therefore do not correctly predict fiscal transparency. The purpose of this paper is to provide a more detailed exposition of stock-flow residuals and the relationship with fiscal transparency, highlighting government acquisition of equities and investment fund shares and their performance in secondary markets. The results suggest that the performance of government equity portfolios correlates with fiscal transparency to the extent that fully transparent governments are expected to generate between 6 and 8 percent higher returns on their equity portfolios than others. These findings suggest that the performance of government assets may be a promising area for future research of fiscal transparency and stock-flow residuals.
Notes:
Description based on print version record.
Other format:
Print Version:
ISBN:
1498353959:
9781498353953
ISSN:
1018-5941
Publisher Number:
10.5089/9781498353953.001
Access Restriction:
Restricted for use by site license.
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