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Nachhaltige Finanz‐ und Investitionspolitik der Bundesländer

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  • Wolfgang Kitterer

Abstract

In Germany the sustainability of fiscal policy is determined to a substantial part by the federal states (Bundeslaender). Their portion of the public debt amounts to nearly 40 percent. Econometric tests show that the fiscal policy of the federal states taken collectively is not sustainable. The requirement for fiscal sustainability is fulfilled only by two western Laender, Hesse and North‐Rhine Westphalia, and one eastern Land (Saxony). Furthermore, it is shown that the constitutional “golden rule” stipulating that borrowing should not exceed investment expenditures does not ensure the solvency of the states. This holds for theoretical reasons but also because there is a lack of clarity and enforceability. Finally, it is argued that the commitment of subnational governments to sustainable public finances could be strengthened by invigorating state‐level tax and expenditure autonomy.

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  • Wolfgang Kitterer, 2007. "Nachhaltige Finanz‐ und Investitionspolitik der Bundesländer," Perspektiven der Wirtschaftspolitik, Verein für Socialpolitik, vol. 8(S1), pages 53-83, April.
    • Handle: RePEc:bla:perwir:v:8:y:2007:i:s1:p:53-83
    DOI: 10.1111/j.1468-2516.2007.00243.x
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    1. Burret, Heiko T. & Feld, Lars P. & Köhler, Ekkehard A., 2016. "(Un-)Sustainability of Public Finances in German Laender: A Panel Time Series Approach," Economic Modelling, Elsevier, vol. 53(C), pages 254-265.
    2. Gebhardt, Heinz & Kambeck, Rainer & Schmidt, Christoph M. & Siemers, Lars-H. R., 2007. "Wider den Staatsbankrott: Streichung des kreditverfassungsrechtlichen Ausnahmetatbestands der "Störung des gesamtwirtschaftlichen Gleichgewichts". Drucksache 14/2578," RWI Projektberichte, RWI - Leibniz-Institut für Wirtschaftsforschung, number 70862.
    3. Burret Heiko T. & Feld Lars P. & Köhler Ekkehard A., 2013. "Sustainability of Public Debt in Germany – Historical Considerations and Time Series Evidence," Journal of Economics and Statistics (Jahrbuecher fuer Nationaloekonomie und Statistik), De Gruyter, vol. 233(3), pages 291-335, June.
    4. Köhler, Ekkehard, 2015. "Fiscal Sustainability in Cross-Dependent Panels: Evidence from the German L nder," VfS Annual Conference 2015 (Muenster): Economic Development - Theory and Policy 113104, Verein für Socialpolitik / German Economic Association.
    5. Markus Reischmann, 2016. "Empirical Studies on Public Debt and Fiscal Transfers," ifo Beiträge zur Wirtschaftsforschung, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, number 63.
    6. Heiko T. Burret & Lars P. Feld & Kö & Ekkehard A. hler, 2014. "Panel Cointegration Tests on the Fiscal Sustainability of German Laender," CESifo Working Paper Series 4929, CESifo.

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