Arbeitspapier
Does the Swiss Debt Brake Induce Sound Federal Finances? A Synthetic Control Analysis
The Swiss debt brake is widely appreciated as one of the most rationally designed fiscal rules in the world and was thus also discussed as blueprint in the debates about fiscal rules in Germany, the European Union member states and Israel. However, evidence that this rule really contributes to sound federal finances does not exist yet. We investigate the effectiveness of the Swiss debt brake by employing the Synthetic Control Method. We find that the introduction of this fiscal rule improved the budget balance by about 3.6 percentage points on average in a post-intervention period covering five years.
- Language
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Englisch
- Bibliographic citation
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Series: CESifo Working Paper ; No. 6044
- Classification
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Wirtschaft
Structure, Scope, and Performance of Government
National Budget, Deficit, and Debt: General
- Subject
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Swiss debt brake
cyclically adjusted budget balance
government debt
synthetic control method
- Event
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Geistige Schöpfung
- (who)
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Pfeil, Christian F.
Feld, Lars P.
- Event
-
Veröffentlichung
- (who)
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Center for Economic Studies and ifo Institute (CESifo)
- (where)
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Munich
- (when)
-
2016
- Handle
- Last update
-
10.03.2025, 11:45 AM CET
Data provider
This object is provided by:
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. If you have any questions about the object, please contact the data provider.
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. If you have any questions about the object, please contact the data provider.
Object type
- Arbeitspapier
Associated
- Pfeil, Christian F.
- Feld, Lars P.
- Center for Economic Studies and ifo Institute (CESifo)
Time of origin
- 2016
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