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Évaluation empirique du frein à l’endettement neuchâtelois

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Abstract

This contribution empirically analyses the debt brake regulation in the Swiss canton of Neuchâtel. The assessment of the debt brake shows that it induced a reduction in the cantonal public debt. The analysis also establishes a pro-cyclical behavior of public investment but this behavior cannot be imputed to the introduction of the debt brake. On the contrary, our analysis suggests that the debt brake contributed to reduce the pro-cyclical movements of public investment. Furthermore, we do not find any evidence that the operating fiscal balance has acted as a transmission channel of business cycles to investment expenditure over the examined period. Nevertheless, a risk exists to observe such a mechanism transmitting business cycles fluctuations to public investment in the future since a link between the net debt ratio and the minimal degree of self-financed investments exists.

Suggested Citation

  • Florian Chatagny, 2018. "Évaluation empirique du frein à l’endettement neuchâtelois," KOF Analysen, KOF Swiss Economic Institute, ETH Zurich, vol. 12(4), pages 37-46, December.
    • Handle: RePEc:kof:anskof:v:12:y:2018:i:4:p:37-46
    DOI: 10.3929/ethz-b-000310676
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    More about this item

    Keywords

    debt brake; public debt and investment; business cycle Choices;
    All these keywords.

    JEL classification:

    • H72 - Public Economics - - State and Local Government; Intergovernmental Relations - - - State and Local Budget and Expenditures
    • H74 - Public Economics - - State and Local Government; Intergovernmental Relations - - - State and Local Borrowing
    • E32 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Business Fluctuations; Cycles
    • E62 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - Fiscal Policy; Modern Monetary Theory

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