Advanced Search
MyIDEAS: Login to save this paper or follow this series

Choice of The Optimum Fiscal Rule – The Long Run Perspective


Author Info

  • Michal Mackiewicz

    (Institute of Economics, University of Lodz)


Paper examines the problem of choice of an optimal fiscal rule in the long run. An ideal rule would typically assure fair distribution of utility over generations, while allowing to maintain the sustainable fiscal position. Three commonly used types: debt, deficit and expenditure rules are considered. The main conclusion is that only the modified deficit rule fulfils the assumptions. The rule requires that government’s policy should aim at keeping the debt-to-GDP ratio constant over the economic cycle. The analysis is extended by taking into account the specific situation of the developing countries. An optimum fiscal constraint is then the Modified Golden Rule, according to which the public assets-to-GDP ratio should be held constant over the cycle.

Download Info

If 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.
File URL:
Download Restriction: no

Bibliographic Info

Paper provided by EconWPA in its series Public Economics with number 0501007.

as in new window
Length: 28 pages
Date of creation: 26 Jan 2005
Date of revision:
Handle: RePEc:wpa:wuwppe:0501007

Note: Type of Document - pdf; pages: 28
Contact details of provider:
Web page:

Related research

Keywords: fiscal rules; fiscal policy; long run;

Find related papers by JEL classification:

This paper has been announced in the following NEP Reports:


No references listed on IDEAS
You can help add them by filling out this form.


Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
as in new window

Cited by:
  1. David Prušvic, 2010. "European Fiscal Policy Rules: First 15 Years," Politická ekonomie, University of Economics, Prague, vol. 2010(1), pages 51-69.


This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.


Access and download statistics


When requesting a correction, please mention this item's handle: RePEc:wpa:wuwppe:0501007. See general information about how to correct material in RePEc.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (EconWPA).

If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

If references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

Please note that corrections may take a couple of weeks to filter through the various RePEc services.