by Boris Cournede, Head of Public Finance Workstream, OECD Economics Department Most OECD countries have very large government sectors: public expenditure amounts to 43% of economic activity, measured by GDP, on average across OECD countries. This proportion exceeds 50% in four OECD countries. The programmes on which governments spend have thus deep implications for people’swell-being … More How can public finance reforms boost economic growth and enhance income equality?
by Debbie Bloch, Public Economics Division, Economics Department Governments today need to balance the policy goals of boosting economic growth and improving equity when making budget decisions. How can public spending choices promote inclusive growth? What can be learned from previous spending decisions in times of crisis? As it becomes increasingly important for policymakers to … More Does public spending foster inclusive growth in your country?
By Orsetta Causa, OECD Economics department Income inequality has increased in most OECD countries over the past two decades. This has come about both because incomes before taxes and transfers have become more unequally distributed, and because the extent of redistribution through taxes and transfers has fallen (“Income redistribution through taxes and transfers across OECD … More An empirical investigation on the drivers of income redistribution across OECD countries
By Orsetta Causa and Mikkel Hermansen, OECD Economics department Many OECD countries have been facing a prolonged period of low growth and stagnating income of the poorest. This challenges governments’ fiscal redistribution, all the more so in a context where new forms of work are calling into question the effectiveness of traditional social safety nets … More Income redistribution through taxes and transfers across OECD countries
Stéphanie Guichard, our guest author, is a former Economic Counsellor to Catherine L. Mann, OECD Chief Economist. Financial globalisation has given international capital flows a central role in the functioning of the global economy, leading to considerable economic research over the past 30 years. Making the most of these capital flows has always been a … More Economic research on international capital flows: where do we stand 10 years after the Global Financial Crisis started?
by Catherine L. Mann, OECD Chief Economist, OECD Economics Department The role of fiscal policy has been at the heart of the policy debate since the financial crisis. With the global economy stuck in a low-growth trap and monetary policy overburdened, it is time to re-assess the use of fiscal policy levers. Government interest payments … More Time to deploy the fiscal levers actively and wisely
by Jean Marc Fournier, Economist, Public Economics Division, OECD Economics Department Public investment benefits current as well as future generations. My research shows that public investment is a game changer, when it comes to boosting long-term growth. Increasing the share of public investment in primary government spending by one percentage point (offset by a reduction … More Most countries have room to increase public investment