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This paper surveys the empirical research on fiscal institutions of the last three decades. The main results are: (i) Constitutional or statutory fiscal limitations have in most cases proved to be effective in cutting down public expenditure, revenue, and debt. (ii) Budgetary proce-dures matter...
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. We find that in election years with fiscal rules in place, public consumption is reduced by 1.6 percentage point of GDP … as compared to election years without these rules. This impact is equivalent to a reduction by a third of the volatility …
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