Do Fiscal Rules Cause Better Fiscal Balances? A New Instrumental Variable Strategy - read free eBook in online reader or directly download on the web page. Select files or add your book in reader. Download and read online ebook Do Fiscal Rules Cause Better Fiscal Balances? A New Instrumental Variable Strategy write by Francesca G Caselli. This book was released on 2019-03-05. Do Fiscal Rules Cause Better Fiscal Balances? A New Instrumental Variable Strategy available in PDF, EPUB and Kindle. This paper estimates the causal effect of fiscal rules on fiscal balances in a panel of 142 countries over the period 1985-2015. Our instrumental variable strategy exploits the geographical diffusion of fiscal rules across countries. The intuition is that reforms in neighboring countries may affect the adoption of domestic reforms through peer pressure and imitational effects. We find that fiscal rules correlate with lower deficits, but the positive link disappears when endogeneity is correctly addressed. However, when considering an index of fiscal rules’ design, we show that well-designed rules have a statistically significant impact on fiscal balances. We conduct several robustness tests and show that our results are not affected by weak instrument problems.
Do Fiscal Rules Cause Better Fiscal Balances? A New Instrumental Variable Strategy
Do Fiscal Rules Cause Better Fiscal Balances? A New Instrumental Variable Strategy - read free eBook in online reader or directly download on the web page. Select files or add your book in reader. Download and read online ebook Do Fiscal Rules Cause Better Fiscal Balances? A New Instrumental Variable Strategy write by Francesca G Caselli. This book was released on 2019-03-05. Do Fiscal Rules Cause Better Fiscal Balances? A New Instrumental Variable Strategy available in PDF, EPUB and Kindle. This paper estimates the causal effect of fiscal rules on fiscal balances in a panel of 142 countries over the period 1985-2015. Our instrumental variable strategy exploits the geographical diffusion of fiscal rules across countries. The intuition is that reforms in neighboring countries may affect the adoption of domestic reforms through peer pressure and imitational effects. We find that fiscal rules correlate with lower deficits, but the positive link disappears when endogeneity is correctly addressed. However, when considering an index of fiscal rules’ design, we show that well-designed rules have a statistically significant impact on fiscal balances. We conduct several robustness tests and show that our results are not affected by weak instrument problems.
Fiscal Rules
Fiscal Rules - read free eBook in online reader or directly download on the web page. Select files or add your book in reader. Download and read online ebook Fiscal Rules write by Klaus Gründler. This book was released on 2020. Fiscal Rules available in PDF, EPUB and Kindle. We examine how fiscal rules influence economic growth. The results show that constitutional fiscal rules promoted growth from the Industrial Revolution until World War II (1789-1950) and also increased modern economic growth (1985-2015). To address selection on unobservables, we conduct a large-scale international survey among 1,224 economic experts in 109 countries. We exploit cross-country differences in expert preferences as an instrumental variable for the adoption of constitutional fiscal rules. The results show that the cumulative long-run effect of permanently adopting constitutional fiscal rules on real per capita GDP is 18%. As a complementary strategy to tackle unobservables, we examine sub-national fiscal rules, employing a newly collected dataset of 206 regional governments from 10 federal states (1992-2012). The results show that fiscal rules also increased economic growth at the sub-national level.
Do Fiscal Rules Cause Fiscal Discipline Over the Electoral Cycle?
Do Fiscal Rules Cause Fiscal Discipline Over the Electoral Cycle? - read free eBook in online reader or directly download on the web page. Select files or add your book in reader. Download and read online ebook Do Fiscal Rules Cause Fiscal Discipline Over the Electoral Cycle? write by Kodjovi M. Eklou. This book was released on 2019-12-27. Do Fiscal Rules Cause Fiscal Discipline Over the Electoral Cycle? available in PDF, EPUB and Kindle. This paper estimates the causal effect of fiscal rules on political budget cycles in a sample of 67 developing countries over the period 1985–2007. We exploit the geographical pattern in the adoption of fiscal rules to isolate an exogenous source of variation in the adoption of national fiscal rules. Based on a diffusion argument, we use the number of other countries in a given subregion that have fiscal rules in place to predict the probability of having them at the country level. We find that in election years with fiscal rules in place, public consumption is reduced by 1.6 percentage point of GDP as compared to election years without these rules. This impact is equivalent to a reduction by a third of the volatility of public consumption in our sample. Furthermore, the effectiveness of these rules depends on their type, their institutional design, whether they have been in place for a long time and finally on the degree of competitiveness of elections.
Second-Generation Fiscal Rules
Second-Generation Fiscal Rules - read free eBook in online reader or directly download on the web page. Select files or add your book in reader. Download and read online ebook Second-Generation Fiscal Rules write by Luc Eyraud. This book was released on 2018-04-13. Second-Generation Fiscal Rules available in PDF, EPUB and Kindle. Fiscal rule frameworks have evolved significantly in response to the global financial crisis. Many countries have reformed their fiscal rules or introduced new ones with a view to enhancing the credibility of fiscal policy and providing a medium-term anchor. Enforcement and monitoring mechanisms have also been upgraded. However, these innovations have made the systems of rules more complicated to operate, while compliance has not improved. The SDN takes stock of past experiences, reviews recent reforms, and presents new research on the effectiveness of rules. It also proposes guiding principles for future reforms to strike a better balance between simplicity, flexibility, and enforceability. Read the blog
