IESET.
Hypotheses·growth·uk_cameron_osborne_austerity_output_effect

UK Cameron-Osborne austerity 2010-2016 reduced output below the counterfactual path and failed to reduce the debt-to-GDP ratio on the government's own timeline.

PARTIALengine/runs/uk_cameron_osborne_austerity_output_effect

partial — debt-target check passes (87.3% vs target 67.0%, overshoot +20.3pp) but UK output gap to donor mean = -0.0083 log-pts > -0.02 — output did not fall below counterfactual by the threshold.

confidence cueThe result is useful, but not decisive. Treat it as a clue, not a settled conclusion.

policy briefMixed or noisy

In ordinary language

Over a long period, do more market-oriented institutions translate into higher income or productivity, once the comparison looks beyond a single success story?

plain answer

The evidence is suggestive but not decisive. debt-target check passes (87.3% vs target 67.0%, overshoot +20.3pp) but UK output gap to donor mean = -0.0083 log-pts > -0.02 - output did not fall below counterfactual by the threshold.

why it matters

Growth claims can look convincing in single success stories. This test asks whether the pattern survives a broader comparison.

how the test works

It compares 1 country or place units from 2010 to 2016, using a synth did design.

what was measured
What we checked
  • Real income per capita
  • Debt to income ratio
what this does not prove

A single test is not the whole truth. It narrows the claim under a specific sample, time period, and method. Strong policy conclusions need the pattern to survive nearby tests, alternative data, and serious objections.

verification

No evidence packet has been generated yet.

Results

engine/runs/uk_cameron_osborne_austerity_output_effect
1007550250201020132016GBR
illustrative sketch · run pending
No coefficients yet. When the model fires, this chart will show real_gdp_per_capita across 1 sampled countries over 20102016.
The shapes above are stylised — none of the lines are real data.
Placeholder for uk_cameron_osborne_austerity_output_effect. Published chart will be generated from engine/runs/uk_cameron_osborne_austerity_output_effect/chart_data.json.

Who has skin in the game — schools predicting on this

10 schools list this hypothesis as a test of their position. The chips below are school-level scoreboard outcomes, not a second hypothesis verdict.

hypothesis verdict vs scoreboard outcome

The banner verdict judges this hypothesis as written. The scoreboard asks whether each school's polarity-corrected prediction was right. Raw status is not a school win: SUPPORTED supports schools that needed SUPPORTED, but refutes schools that needed REFUTED.

Pre-registration

pre-registered
first-spec commit bae09ab · 2026-04-29T22:09:42Z

UK Cameron-Osborne austerity 2010-2016 reduced output below the counterfactual path and failed to reduce the debt-to-GDP ratio on the government's own timeline.

Falsification criterion — what would disprove this

set before the run · honoured after

This hypothesis is considered falsified if:

PRIMARY (dispositive): the dispositive thresholds for this hypothesis are encoded directly in engine/runs/uk_cameron_osborne_austerity_output_effect/replication.py and pinned in methodology_note. The auto-grader's verdict in diagnostics.json corresponds to those dispositive checks, not to the legacy boilerplate. See methodology_note for the exact pre-registered thresholds. Headline: PRIMARY (dispositive): cumulative log GDP-per-capita gap UK − donor-pool

formal test & threshold
test:      Synth-DiD on UK real GDP per capita 2010-2016 with donor pool {USA, FRA, JPN, AUS, CAN}; supported if cumulative output gap < -2% by 2014 and debt-to-GDP ratio at 2015 exceeds 2010 government target by >5pp at p<0.10.

Method

Template
synth_did
Clustering
none
Sample
1 countries · 20102016
Evidence type
associational

UK treated 2010-2016; donor pool of advanced economies with comparable pre-2010 fiscal positions but no Cameron-Osborne-style consolidation (USA, FRA, JPN, AUS, CAN). Outcomes: real GDP per capita and debt-to- GDP. Tests whether output fell below the synthetic counterfactual and whether the debt-to-GDP target was met on schedule.

Data

VariableSourceTransform
real_gdp_per_capita
outcome
world_bank_wdi:NY.GDP.PCAP.KDtier 2
debt_to_gdp_ratio
outcome
imf:GGXWDG_NGDPtier 2

ready  ·  pending  ·  reconstruct-needed

Detailed result card

UK Cameron-Osborne austerity 2010-16: output and debt path

Verdict: partial — debt-target check passes (87.3% vs target 67.0%, overshoot +20.3pp) but UK output gap to donor mean = -0.0083 log-pts > -0.02 — output did not fall below counterfactual by the threshold.

Method

Two-leg dispositive primary: (1) UK − donor-pool-mean log GDP-pc growth gap 2009→2014 <= -0.02 log-pts AND (2) 2015 general-government debt to GDP exceeds 2010 government target (67.0%) by > 5.0pp. Both must hold for SUPPORTED. Donor pool: USA, FRA, JPN, AUS, CAN. Synth-control weighting included as a robustness check on the equal-weighted donor mean.

Numbers

  • UK log GDP-pc growth 2009→2014: +0.0572
  • Donor mean log growth: +0.0655 → UK gap -0.0083
  • Synth-control log growth: +0.0794 → UK gap -0.0222
  • SC donor weights: {'USA': 0.119, 'FRA': 0.026, 'JPN': 0.746, 'AUS': 0.017, 'CAN': 0.091}
  • 2015 UK debt/GDP: 87.3; overshoot vs 2010 target 20.299999999999997

Caveats

  • FRA + JPN had their own fiscal consolidations later in the window — biases the test toward not finding an austerity effect (conservative for the hypothesis).
  • Debt-target value 67% is the OBR June-2010 trajectory midpoint for PSND/GDP at FY 2014/15; IMF GGXWDG is a slightly broader measure (general gov gross debt) and runs a few pp higher than PSND.
  • Synth-control weights are random-search Dirichlet over a 5-donor simplex with pre-window 2007-2009 — short pre-window weakens identification.

Notes

Stub seeded from a Post-Keynesian school prediction about UK 2010-2016 austerity. Needs human review to confirm donor-pool definition and counterfactual debt-trajectory specification before promotion.

Authored framework. Read the transparency note.