The Choice of Fiscal Regimes in the World
Fiscal policy regimes are increasingly adopted by governments that aim at contributing to stabilize business cycles and make public finances more resilient to political pressure. This paper presents a comprehensive empirical exploration of the possible explanations of why countries choose fiscal policy regimes. The paper puts together and uses a large world panel dataset for treatment and control country groups, applies five panel-data estimation techniques for discrete-choice dependent variables, and conducts robustness checks for different control groups and time periods. The paper’s evidence shows that the likelihood of having a fiscal regime in place increases significantly and robustly with the government balance, government stability, and GDP per-capita, and declines with dependency ratio and expenditure procyclicality.
|Date of creation:||Sep 2008|
|Contact details of provider:|| Postal: Casilla No967, Santiago|
Phone: (562) 670 2000
Fax: (562) 698 4847
Web page: http://www.bcentral.cl/
More information through EDIRC
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Arellano, M & Carrasco, R, 1996.
"Binary Choice Panel Data Models with Predetermined Variables,"
9618, Centro de Estudios Monetarios Y Financieros-.
- Arellano, Manuel & Carrasco, Raquel, 2003. "Binary choice panel data models with predetermined variables," Journal of Econometrics, Elsevier, vol. 115(1), pages 125-157, July.
- Arellano, Manuel & Honore, Bo, 2001.
"Panel data models: some recent developments,"
Handbook of Econometrics,
in: J.J. Heckman & E.E. Leamer (ed.), Handbook of Econometrics, edition 1, volume 5, chapter 53, pages 3229-3296
- George Kopits, 2001. "Fiscal Rules; Useful Policy Framework or Unnecessary Ornament?," IMF Working Papers 01/145, International Monetary Fund.
- Ekaterini Kyriazidou, 1997. "Estimation of a Panel Data Sample Selection Model," Econometrica, Econometric Society, vol. 65(6), pages 1335-1364, November.
When requesting a correction, please mention this item's handle: RePEc:chb:bcchwp:487. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Claudio Sepulveda)
If references are entirely missing, you can add them using this form.