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The Sustainability of Fiscal Policy in the United States

Bohn, Henning - CESifo - 2005

The paper examines the sustainability of U.S. fiscal policy, finding substantial evidence in favor. I summarize the U ….S. fiscal record from 1792-2003, critically review sustainability conditions and their testable implications, and apply them to …’ severe heteroskedasticity. The most credible evidence in favor of sustainability is the robust positive response of primary …

Persistent link: https://www.econbiz.de/10005765777

Sustainability of German Fiscal Policy and Public Debt: Historical and Time Series Evidence for the Period 1850-2010

Burret, Heiko T.; Feld, Lars P.; Köhler, Ekkehard A. - CESifo - 2013

debt crisis has prompted a fundamental re]evaluation of public debt sustainability and the looming threat of sovereign debt … peacetime debt]to]GDP (Gross Domestic Product) ratio has never been higher. In this paper, we analyse the sustainability of …]torical analysis, we conduct formal tests on fiscal sustainability, including tests on stationarity and cointegration and the …

Persistent link: https://www.econbiz.de/10010627572

Fiscal Rules and Government Size in the European Union

Mierau, Jochen O.; Andreu, Eduard Suari - CESifo - 2014

This paper studies the impact of national fiscal rules on government size as measured by the ratio of government expenditures to gross domestic product. We develop a model of the budgetary process and show that a common pool problem may arise which can be mitigated through fiscal rules. We test...

Persistent link: https://www.econbiz.de/10010877800

Vertical Effects of Fiscal Rules - The Swiss Experience

Burret, Heiko T.; Feld, Lars P. - CESifo - 2014

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...

Persistent link: https://www.econbiz.de/10010948867

Does Fiscal Oversight Matter?

Christofzik, Désirée; Kessing, Sebastian - CESifo - 2014

A gradually introduced reform of local government accounting made it temporarily likely for municipalities in the German state of North Rhine-Westphalia to avoid the effective control of their budget by the authorities in charge with overseeing local government budgets and enforcing the existing...

Persistent link: https://www.econbiz.de/10010948868

Sovereign Bond Market Reactions to Fiscal Rules and No-Bailout Clauses - The Swiss Experience

Feld, Lars P.; Kalb, Alexander; Moessinger, Marc-Daniel; … - CESifo - 2013

We investigate the political determinants of risk premiums which sub-national governments in Switzerland have to pay for their sovereign bond emissions. For this purpose we analyse financial market data from 288 tradable cantonal bonds in the period from 1981 to 2007. Our main focus is on two...

Persistent link: https://www.econbiz.de/10010639423

Fiscal Rules and the Opportunistic Behaviour of the Incumbent Politician: Evidence from Italian Municipalities

Bartolini, David; Santolini, Raffaella - CESifo - 2009

Previous studies on electoral competition show that fiscal variables are manipulated by incumbent politicians in order to be re-elected. This phenomenon has been addressed by the literature on electoral budget cycle and, in a decentralised economy, by the literature on yardstick competition. Our...

Persistent link: https://www.econbiz.de/10005000400

Policy Responses to Fiscal Restraints: A Difference-in-Discontinuities Design

Grembi, Veronica; Nannicini, Tommaso; Troiano, Ugo - CESifo - 2012

We evaluate the effect of relaxing fiscal rules on policy outcomes applying a quasi-experimental research design. In 1999, the Italian central government introduced fiscal rules aimed at imposing fiscal discipline on municipal governments, and in 2001 the rules were relaxed for municipalities...

Persistent link: https://www.econbiz.de/10010593127

Fiscal Rules and Composition Bias in OECD Countries

Dahan, Momi; Strawczynski, Michel - CESifo - 2010

Using a sample of OECD countries, this paper finds that while fiscal rules succeeded in reducing total government expenditures and budget deficits in the medium term, they significantly affected the composition of government expenditure: the ratio of social transfers to government consumption...

Persistent link: https://www.econbiz.de/10008572552

What Should Fiscal Councils Do?

Calmfors, Lars; Wren-Lewis, Simon - CESifo - 2011

The paper analyses theoretically what role fiscal councils could play and surveys empirically the activities of existing councils. Case studies of the Swedish Fiscal Policy Council and the UK Office for Budget Responsibility are done. It is concluded that fiscal councils should be advisory,...

Persistent link: https://www.econbiz.de/10008872217