| Number |
CREPEDP-180 |
| Publication Date |
December 2025 |
| Title |
Support for Fiscal Consolidation in a Highly-Indebted Country |
| Author |
Takuji Fueki, Masashi Hino, Munechika Katayama, and Taisuke Nakata
|
| Abstract |
Government debts have been increasing over the past several decades in many advanced
economies, often raising concerns about fiscal sustainability. In this paper, we
conduct an information provision experiment to understand the public’s view on fiscal
consolidation. The public tends to underestimate the current debt-to-GDP ratio. We
find that the provision of the current debt-to-GDP ratio tends to increase support for
fiscal consolidation, whereas additional provision of a realistic future projection tends
to attenuate that effect. We also find that fiscal policy views are heterogeneous along
key socio-economic attributes, but the responses to information provision are not.
|
| Keywords |
Fiscal Consolidation; Government Debt; Information Provision Experiment;
Randomized Controlled Trial |
| Other information |
Paper in English (56 pages) |