Ineffective fiscal rules? The effect of public sector accounting standards on budgets, efficiency, and accountability

Arbeitspapier

International organizations have encouraged national governments to switch from traditional cash-based to business-like accrual accounting, on the presumption that long-run benefits may outweigh substantial implementation and operating costs. We use a quasi-experimental setting to evaluate whether changing public sector accounting standards is justified. Some local governments in the German federal state of Bavaria introduced accrual accounting while others retained cash-based accounting. Difference-in-differences and event-study results do not show that (capital) expenditures, public debt, voter turnout, or government efficiency developed differently after changes in accounting standards. Operating costs of administration, however, increase under accrual accounting.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: ifo Working Paper ; No. 312

Classification and Topics

• Classification: Wirtschaft ; Institutions: Design, Formation, Operations, and Impact ; Bureaucracy; Administrative Processes in Public Organizations; Corruption ; State and Local Budget and Expenditures ; Public Administration; Public Sector Accounting and Audits
• Subject: Fiscal rules ; public accounting ; budget transparency ; sustainability ; government efficiency ; accountability ; local government

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Dorn, Florian ; Gaebler, Stefanie ; Rösel, Felix
• Event: Veröffentlichung
• (who): ifo Institute - Leibniz Institute for Economic Research at the University of Munich
• (where): Munich
• (when): 2019

Further information

• Handle: http://hdl.handle.net/10419/213589
• Last update: 10.03.2025, 11:43 AM CET