politicians generates a procyclical bias in government spending. The introduction of fiscal transparency generates two new … redictions: 1) the procyclical bias in fiscal policy arises only in good times; and 2) a higher degree of fiscal transparency … reduces the bias in good times. We find solid empirical support for both predictions using data on both OECD countries and a …

government has time-inconsistent preferences with a present-bias towards public spending. The government chooses a fiscal rule to …

government has time-inconsistent preferences with a present-bias towards public spending. The government chooses a fiscal rule to …

uncoordinated rules. If governments' present bias is small, coordinated rules are tighter than uncoordinated rules: individual … countries do not internalize the redistributive effect of interest rates. However, if the bias is large, coordinated rules are …

uncoordinated rules. If governments' present bias is small, coordinated rules are tighter than uncoordinated rules: individual … countries do not internalize the redistributive effect of interest rates. However, if the bias is large, coordinated rules are …