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Coordination et décentralisation des règles budgétaires dans une structure fédéraliste. Le cas des cantons suisses

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  • Nils Soguel

Abstract

The coordination of fiscal policies between states or municipalities collides with their individual spending and taxing power. When independently adopted, budget rules can potentially endanger the overall need for macroeconomic stabilisation. Utilising the example of the Swiss cantons, the paper analyses the possibility to bring out a counter-cyclical policy when sublevel governments introduce compelling rules to balance or almost balance their budget. It is shown that cantons usually adopt a pro-cyclical behaviour. However this behaviour can be thwarted if the central government uses the vertical intergovernmental transfers as an instrument of its stabilisation policy.

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Bibliographic Info

Article provided by Armand Colin in its journal Revue d’Économie Régionale & Urbaine.

Volume (Year): juin (2006)
Issue (Month): 1 ()
Pages: 27-48

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Handle: RePEc:cai:rerarc:reru_061_0027

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Web page: http://www.cairn.info/revue-d-economie-regionale-et-urbaine.htm

Related research

Keywords: coordination; budget rules; subnational governments; pro-cyclicality; fiscal federalism;

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  1. Lars P Feld & Gebhard Kirchgässner, 2001. "The political economy of direct legislation: direct democracy and local decision-making," Economic Policy, CEPR & CES & MSH, vol. 16(33), pages 329-367, October.
  2. Nils Soguel & Marc-Jean Martin, 2005. "26 cantons suisses… 27 politiques budgétaires ou aucune?," Public Economics 0507007, EconWPA.
  3. Patrick Villieu, 2003. "Pacte de stabilité, crédibilité du policy mix et coordination des politiques budgétaires en union monétaire," Revue économique, Presses de Sciences-Po, vol. 54(1), pages 25-46.
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