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Do National Numerical Fiscal Rules really shape fiscal behaviours in developing countries? A treatment effect evaluation

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Listed author(s):
  • Tapsoba, René

Abstract

This paper analyses the effect of National Numerical Fiscal Rules (FRs) upon fiscal discipline in 74 developing countries over the period 1990–2007. It is the first study that assesses the impact of FRs on budgetary outcomes while controlling for the self-selection problem. It finds that the effect of FRs on structural fiscal balance is significantly positive, robust to a variety of alternative specifications, and varies with the type of FRs. It also finds that the treatment effect differs according to countries' characteristics: number of FRs, time length since FRs adoption, presence of supranational FRs, government fractionalisation and government stability.

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File URL: http://www.sciencedirect.com/science/article/pii/S0264999312000594
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Article provided by Elsevier in its journal Economic Modelling.

Volume (Year): 29 (2012)
Issue (Month): 4 ()
Pages: 1356-1369

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Handle: RePEc:eee:ecmode:v:29:y:2012:i:4:p:1356-1369
DOI: 10.1016/j.econmod.2012.03.003
Contact details of provider: Web page: http://www.elsevier.com/locate/inca/30411

Keywords: Fiscal Rules; Fiscal discipline; Treatment effect; Propensity scores-matching; Developing countries;

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Find related papers by JEL classification:
  • H11 - Public Economics - - Structure and Scope of Government - - - Structure and Scope of Government
  • H61 - Public Economics - - National Budget, Deficit, and Debt - - - Budget; Budget Systems
  • H62 - Public Economics - - National Budget, Deficit, and Debt - - - Deficit; Surplus

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Cited by:

  1. Christian EBEKE & Mario MANSOUR & Grégoire ROTA-GRAZIOSI, 2016. "The Power to Tax in Sub-Saharan Africa: LTUs, VATs, and SARAs," Working Papers P154, FERDI.
  2. Zareh Asatryan & César Castellón & Thomas Stratmann, 2016. "Balanced Budget Rules and Fiscal Outcomes: Evidence from Historical Constitutions," CESifo Working Paper Series 5893, CESifo Group Munich.
  3. Martine Guerguil & Pierre Mandon & Rene Tapsoba, 2016. "Flexible Fiscal Rules and Countercyclical Fiscal Policy," IMF Working Papers 16/8, International Monetary Fund.
  4. Pierre Mandon, 2014. "Evaluating Treatment Effect and Causal Effect of Fiscal Rules on Procyclicality New assessments on old debate: rules vs. discretion," Working Papers halshs-01015756, HAL.
  5. Chakraborty, Pinaki & Dash, Bharatee Bhusana, 2013. "Fiscal Reforms, Fiscal Rule and Development Spending: How Indian States have Performed?," Working Papers 13/122, National Institute of Public Finance and Policy.
  6. Heinemann, Friedrich & Moessinger, Marc-Daniel & Yeter, Mustafa, 2015. "Do Fiscal Rules Constrain Fiscal Policy? A Meta-Regression-Analysis," Annual Conference 2015 (Muenster): Economic Development - Theory and Policy 112800, Verein für Socialpolitik / German Economic Association.
  7. Christian Mumssen & Yasemin Bal-Gunduz & Christian Ebeke & Linda Kaltani, 2013. "IMF-Supported Programs in Low Income Countries; Economic Impact over the Short and Longer Term," IMF Working Papers 13/273, International Monetary Fund.
  8. Reuter, Wolf Heinrich, 2015. "National numerical fiscal rules: Not complied with, but still effective?," European Journal of Political Economy, Elsevier, vol. 39(C), pages 67-81.
  9. Pierre MANDON, 2014. "Evaluating Treatment Effect and Causal Effect of Fiscal Rules on Procyclicality New assessments on old debate: rules vs. discretion," Working Papers 201414, CERDI.
  10. Paret, Anne-Charlotte, 2017. "Debt sustainability in emerging market countries: Some policy guidelines from a fan-chart approach," Economic Modelling, Elsevier, vol. 63(C), pages 26-45.
  11. Jean-Louis Combes & Xavier Debrun & Alexandru Minea & Rene Tapsoba, 2014. "Inflation Targeting and Fiscal Rules; Do Interactions and Sequencing Matter?," IMF Working Papers 14/89, International Monetary Fund.
  12. Calixte Ahokpossi & Laurence Allain & Giovanna Bua, 2014. "A Constrained Choice? Impact of Concessionality Requirements on Borrowing Behavior," IMF Working Papers 14/176, International Monetary Fund.
  13. Pierre Mandon, 2014. "Evaluating Treatment Effect and Causal Effect of Fiscal Rules on Procyclicality New assessments on old debate: rules vs. discretion," Working Papers halshs-01015760, HAL.

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