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Moving Beyond Traditional Indicators of Fiscal Sustainability: Examples from Locally Chosen Indicators

  • Daphne T. Greenwood
Chapter

Abstract

This chapter examines fiscal sustainability in the context of sustainable development and the capital stocks that are critical to maintaining economic capacity. New indicators consistent with sustainable development are presented, drawing from local indicator projects around the world. While the ratio of national debt to national income (debt/GNI) is often used as a measure of fiscal sustainability, reliance on a single indicator raises the potential for selection bias. Since goals and indicators affect the conceptual framework within which policy is developed, an incorrect or incomplete indicator can interfere with adequately maintaining economic capacity or economic activity. A more comprehensive set of indicators would show the link between future spending needs and investment made in the present.

Keywords

Indicators Fiscal rules Sustainability Public debt 

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Copyright information

© The Author(s) 2018

Authors and Affiliations

  • Daphne T. Greenwood
    • 1
  1. 1.University of Colorado at Colorado SpringsColorado SpringsUSA

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