We examine how fiscal rules influence economic growth. The results show that constitutional fiscal rules promoted growth from the Industrial Revolution until World War II (1789-1950) and also increased modern economic growth (1985-2015). To address selection on unobservables, we conduct a...

We examine whether US and German state governments pursue sustainable fiscal policies taking into account fiscal transfers. Using panel data techniques we investigate whether the debt-to-GDP ratio had a positive influence on the primary surplus (Bohn-model). We show that including/excluding...

Zur Vorbereitung seines Fünften Tragfähigkeitsberichts hat das Bundesministerium der Finanzen das ifo Institut - Leibniz-Institut für Wirtschaftsforschung an der Universität München e.V. in Kooperation mit der Ruhr-Universität Bochum mit einer Studie beauftragt. Ihre Aufgabe ist es, aus...