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Are Preferences for Fiscal Discipline Endogenous

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  • Pujol, Francesc
  • Weber, Luc

Abstract

Differences in voters' fiscal preferences are examined taking advantage of the exceptional Swiss institutional setting. Empirical evidence suggests that preferences are determined by strictly cultural patterns (cultural area measured by language). Thus, fiscal preferences can be considered as being largely exogenous. This implies that, except for special cases, it is not possible to find simple proxy variables for fiscal preferences. An ad hoc index of fiscal preferences ought to be built up when the introduction of this variable is required for comprehensive explanatory models of fiscal discipline or for other related studies. Copyright 2003 by Kluwer Academic Publishers

Suggested Citation

  • Pujol, Francesc & Weber, Luc, 2003. "Are Preferences for Fiscal Discipline Endogenous," Public Choice, Springer, vol. 114(3-4), pages 421-444, March.
    • Handle: RePEc:kap:pubcho:v:114:y:2003:i:3-4:p:421-44
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    Citations

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    Cited by:

    1. Lars P. Feld & Jan Schnellenbach & Christoph A Schaltegger, 2004. "On Government Centralization and Fiscal Referendums: A Theoretical Model and Evidence from Switzerland," Marburg Working Papers on Economics 200419, Philipps-Universität Marburg, Faculty of Business Administration and Economics, Department of Economics (Volkswirtschaftliche Abteilung).
    2. Mark Schelker & Reiner Eichenberger, 2008. "Rethinking Public Auditing Institutions: Empirical Evidence from Swiss Municipalities," CREMA Working Paper Series 2008-06, Center for Research in Economics, Management and the Arts (CREMA).
    3. Reiner Eichenberger & Mark Schelker, 2007. "Independent and competing agencies: An effective way to control government," Public Choice, Springer, vol. 130(1), pages 79-98, January.
    4. Dilla, Diana, 2017. "Staatsverschuldung und Verschuldungsmentalität [Public Debt and Debt Mentality]," MPRA Paper 79432, University Library of Munich, Germany.
    5. Schelker, Mark & Eichenberger, Reiner, 2010. "Auditors and fiscal policy: Empirical evidence on a little big institution," Journal of Comparative Economics, Elsevier, vol. 38(4), pages 357-380, December.
    6. Feld, Lars P. & Schaltegger, Christoph A. & Schnellenbach, Jan, 2008. "On government centralization and fiscal referendums," European Economic Review, Elsevier, vol. 52(4), pages 611-645, May.
    7. Heinemann, Friedrich & Osterloh, Steffen & Kalb, Alexander, 2014. "Sovereign risk premia: The link between fiscal rules and stability culture," Journal of International Money and Finance, Elsevier, vol. 41(C), pages 110-127.
    8. Simon Luechinger & Christoph Schaltegger, 2013. "Fiscal rules, budget deficits and budget projections," International Tax and Public Finance, Springer;International Institute of Public Finance, vol. 20(5), pages 785-807, October.
    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 halshs-01015760, HAL.
    10. Christoph A. Schaltegger & Lars P. Feld, 2001. "On Government Centralization and Budget Referendums: Evidence from Switzerland," CESifo Working Paper Series 615, CESifo.
    11. Adriel Jost, 2018. "Cultural Differences in Monetary Policy Preferences," Working Papers 2018-02, Swiss National Bank.
    12. 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.
    13. Pierre Mandon, 2014. "Evaluating Treatment Effect and Causal Effect of Fiscal Rules on Procyclicality," Working Papers hal-01015439, HAL.
    14. 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.

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