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Do fiscal responsibility laws matter? Evidence from emerging market economies suggests not

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  • John Thornton

Abstract

This paper asks whether the adoption of fiscal responsibility laws (FRLs) has improved fiscal performance in nine emerging market economies, as measured by developments in their key fiscal balances. Examining these economies alone, their fiscal performance improved on average between the period before FLRs were adopted and the period after they were adopted. However, emerging market economies that did not adopt FLRs also experienced improvements in their fiscal performance around the same time. The finding suggests that the better fiscal performance in the nine emerging market economies resulted from something other than the adoption of FLRs.

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File URL: http://www.tandfonline.com/doi/abs/10.1080/17487870902872912
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Bibliographic Info

Article provided by Taylor & Francis Journals in its journal Journal of Economic Policy Reform.

Volume (Year): 12 (2009)
Issue (Month): 2 ()
Pages: 127-132

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Handle: RePEc:taf:jpolrf:v:12:y:2009:i:2:p:127-132

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Related research

Keywords: fiscal responsibility laws; fiscal policy;

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Cited by:
  1. Carlos Caceres & Leandro Medina, 2012. "Measures of Fiscal Risk in Hydrocarbon-Exporting Countries," IMF Working Papers 12/260, International Monetary Fund.

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