Fiscal Rules to Tame the Political Budget 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 Fiscal Rules to Tame the Political Budget Cycle write by Lorenzo Forni. This book was released on 2017-01-20. Fiscal Rules to Tame the Political Budget Cycle available in PDF, EPUB and Kindle. The paper provides evidence that fiscal rules can limit the political budget cycle. It focuses on the application of the Italian fiscal rule at the sub-national level over the period 2004-2006 and shows that: 1) municipalities are subject to political budget cycles in capital spending; 2) the Italian subnational fiscal rule introduced in 1999 has been enforced by the central government; 3) municipalities subject to the fiscal rule show more limited political budget cycles than municipalities not subject to the rule. In order to identify the effect, we rely on the fact that the domestic fiscal rule does not apply to municipalities below 5,000 inhabitants. We find that the political budget cycle increases real capital spending by about 35 percent on average in the years prior to municipal elections and that the sub-national fiscal rule reduces these figures by about two thirds.
Making Rules Credible
Making Rules Credible - 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 Making Rules Credible write by Jorge M. Streb. This book was released on 2011. Making Rules Credible available in PDF, EPUB and Kindle. Political budget cycles (PBCs) result from the credibility problems that office-motivated incumbents face under asymmetric information, due to their temptation to manipulate fiscal policy to increase their electoral chances. We analyze the role of rules that limit debt, crucial for aggregate PBCs to take place. Since the budget process under separation of powers typically requires that the legislature authorize new debt, divided government can make these fiscal rules credible. Commitment is undermined either by unified government or by imperfect compliance with the budget law. When divided government affects efficiency, voters must trade off electoral distortions and government competence.
Fiscal Rules and the Budget Process
Fiscal Rules and the Budget Process - 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 and the Budget Process write by Gian Maria Milesi-Ferretti. This book was released on 2006. Fiscal Rules and the Budget Process available in PDF, EPUB and Kindle. This paper examines the rationale for the imposition of fiscal rules as a way to reduce budgetary imbalances. It presents theoretical arguments for the existence of a quot;fiscal deficit biasquot; and the empirical evidence on the economic, political and institutional factors leading to this bias. In the context of these findings, it discusses the potential role of legal constraints on the level of key fiscal variables, and of reforms in budgetary procedures in enhancing fiscal discipline. It also evaluates proposals for budgetary reform in Italy.
The Political Budget Cycle is where You Can't See it
The Political Budget Cycle is where You Can't See it - 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 The Political Budget Cycle is where You Can't See it write by . This book was released on 2004. The Political Budget Cycle is where You Can't See it available in PDF, EPUB and Kindle.
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
