Vertical Effects of Fiscal Rules - The Swiss Experience

Arbeitspapier

Formal fiscal rules have been introduced in many countries throughout the world. While most studies focus on intra]jurisdictional effects of fiscal rules, vertical impacts on the finances of other levels of governments have yet to be explored thoroughly. The paper investigates the influence of Swiss cantonal debt brakes on municipal finances during the years 1980]2011 by examining cantonal aggregated and disaggregated local data. A Difference]in]Differences estimation (two-way fixed effects) provides little evidence that budget constraints at the cantonal level affect municipal finances and fiscal decentralization, respectively.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: CESifo Working Paper ; No. 5043

Classification and Topics

• Classification: Wirtschaft ; National Budget, Deficit, and Debt: General ; Intergovernmental Relations; Federalism; Secession ; State and Local Borrowing ; State and Local Budget and Expenditures
• Subject: fiscal rules ; vertical effects ; fiscal shocks ; decentralization ; sub-national finances

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Burret, Heiko T. ; Feld, Lars P.
• Event: Veröffentlichung
• (who): Center for Economic Studies and ifo Institute (CESifo)
• (where): Munich
• (when): 2014

Further information

• Handle: http://hdl.handle.net/10419/105143
• Last update: 10.03.2025, 11:44 AM CET