Baig, Taimur; Abiad, Abdul - International Monetary Fund (IMF) - 2005
economic, political, and institutional variables in determining fiscal effort, as proxied by the primary surplus. We find that … while fiscal effort increases, as expected, with the level of lagged debt, this effect tapers off beyond a certain threshold …. We also find an inverse U-shaped relationship between the primary balance and revenue. Fiscal effort rises with positive …