The effects of fiscal rules on public finances and their identification

Konferenzbeitrag

Many economic studies analyse the impact of fiscal rules and discuss their effectiveness in limiting excessive debt. A majority of these studies, however, neglects or only deals insufficiently with the potential issue of endogeneity. In this paper, we propose a novel identification approach which identifies the impact of fiscal rules free from effects driving simultaneously the fiscal performance and the existence or strength of rules at the country level. In its core, the approach relies on unexpected shocks in long-run growth in order to derive a setting free from unobserved fiscal preferences and to allow for causal interpretation.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: Beiträge zur Jahrestagung des Vereins für Socialpolitik 2014: Evidenzbasierte Wirtschaftspolitik - Session: Fiscal Sustainability ; No. B20-V1

Classification and Topics

• Classification: Wirtschaft ; National Government Expenditures and Related Policies: General ; National Budget, Deficit, and Debt: General ; National Debt; Debt Management; Sovereign Debt

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Yeter, Mustafa ; Heinemann, Friedrich
• Event: Veröffentlichung
• (who): ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften, Leibniz-Informationszentrum Wirtschaft
• (where): Kiel und Hamburg
• (when): 2014

Further information

• Handle: http://hdl.handle.net/10419/100425
• Last update: 16.09.2025, 1:42 AM CEST