Fiscal Discipline: Rules Rather than Institutions
AbstractThe lack of fiscal discipline is a natural and pervasive implication of the perceived separation between the benefits from public spending and the taxes that individuals and interest groups receive and pay, respectively. The implication is that budget preparation, decision and execution must be constrained. The challenge is that the policymakers who need to be constrained are those who must decide the constraints. Two broad classes of solutions are possible: institutions that shape the budgetary process and quantitative rules that set limits. The mounting experience with both institutions and rules is disappointing, for reasons that are often complementary. Examining the reasons for this state of affairs, this article argues that institutions and rules ought to be combined and associated with advisory fiscal councils.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoArticle provided by National Institute of Economic and Social Research in its journal National Institute Economic Review.
Volume (Year): 217 (2011)
Issue (Month): 1 (July)
Contact details of provider:
Postal: 2 Dean Trench Street, Smith Square, London SW1P 3HE
Phone: +44 (020) 7222 7665
Fax: +44 (020) 7654 1900
Web page: http://www.niesr.ac.uk/
More information through EDIRC
Fiscal discipline; deficit bias; policy rules; fiscal institutions;
Find related papers by JEL classification:
- E02 - Macroeconomics and Monetary Economics - - General - - - Institutions and the Macroeconomy
You can help add them by filling out this form.
CitEc Project, subscribe to its RSS feed for this item.
- repec:spo:wpecon:info:hdl:2441/eo6779thqgm5r489m6u1i2a0o is not listed on IDEAS
- repec:spo:wpecon:info:hdl:2441/eo6779thqgm5r489maqa474kg is not listed on IDEAS
- Catherine Mathieu & Henri Sterdyniak, 2012.
"Faut-il des règles de politique budgétaire ?,"
Revue de l'OFCE,
Presses de Sciences-Po, vol. 0(7), pages 299-346.
- Catherine Mathieu & Henri Sterdyniak, 2012. "Faut-il des règles de politiques budgétaires ?," Sciences Po publications info:hdl:2441/eo6779thqgm, Sciences Po.
- Catherine Mathieu & Henri Sterdyniak, 2012. "Faut-il des règles de politique budgétaire ?," Sciences Po publications 2012-07, Sciences Po.
- Catherine Mathieu & Henri Sterdyniak, 2012. "Faut-il des règles de politique budgétaire," Documents de Travail de l'OFCE 2012-07, Observatoire Francais des Conjonctures Economiques (OFCE).
- Catherine Mathieu & Henri Sterdyniak, 2013.
"Do we need fiscal rules ?,"
Sciences Po publications
info:hdl:2441/dambferfb7d, Sciences Po.
- André Grjebine, 2013. "L’Eurosystème: un mécanisme de transferts en faveur des pays déficitaires ? Le débat," Sciences Po publications info:hdl:2441/eo6779thqgm, Sciences Po.
- Sacchi, Agnese & Salotti, Simone, 2014. "The impact of national fiscal rules on the stabilisation function of fiscal policy," MPRA Paper 56982, University Library of Munich, Germany.
- Suari Andreu, Eduard & Mierau, Jochen O., 2014.
"Fiscal rules and government size in the European Union,"
14009-EEF, University of Groningen, Research Institute SOM (Systems, Organisations and Management).
- Jochen O. Mierau & Eduard Suari Andreu, 2014. "Fiscal Rules and Government Size in the European Union," CESifo Working Paper Series 4693, CESifo Group Munich.
- repec:spo:wpecon:info:hdl:2441/eu4vqp9ompqllr09j0h168m2j is not listed on IDEAS
- Henri Sterdyniak, 2012. "Ramener à zéro le déficit public doit-il être l’objectif central de la politique économique ?," Sciences Po publications info:hdl:2441/c6t1fl36hv9, Sciences Po.
- repec:spo:wpecon:info:hdl:2441/c6t1fl36hv9s7q89j8pa18291 is not listed on IDEAS
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (SAGE Publications).
If references are entirely missing, you can add them using this form.