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Independent Fiscal Agencies

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  • Xavier Debrun
  • David Hauner
  • Manmohan S. Kumar

Abstract

There has been a considerable literature regarding the incentives of policymakers as a prime reason for persistent fiscal deficits and a variety of fiscal rules have been proposed as a remedy. However, the often inadequate flexibility of rules and the success of policy delegation in the monetary realm have motivated a small but growing number of studies that suggest delegating some aspects of fiscal policy to what will here be called ‘independent fiscal agencies’. This paper surveys the related literature with a focus on three aspects: the motivation for the establishment of such agencies; their potential design; and the experience with these types of institutions.

Suggested Citation

  • Xavier Debrun & David Hauner & Manmohan S. Kumar, 2009. "Independent Fiscal Agencies," Journal of Economic Surveys, Wiley Blackwell, vol. 23(1), pages 44-81, February.
    • Handle: RePEc:bla:jecsur:v:23:y:2009:i:1:p:44-81
    DOI: 10.1111/j.1467-6419.2008.00556.x
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