The design of national fiscal frameworks and their budgetary impact
This study analyses the link between fiscal frameworks and their budgetary impact. We look at different features of national numerical fiscal rules in combination with fiscal councils and medium-term budgeting frameworks. We construct our own time-varying dataset for national fiscal frameworks for the period 1990-2012 covering all 27 EU Member States and estimate a dynamic panel on aggregate and disaggregated fiscal policy variables. We find strong support that numerical fiscal rules help to improve the primary balance, and that the budgetary impact can be further strengthened when supported by independent fiscal councils and an effective medium-term budgeting framework. JEL Classification: E61, E62, H60
|Date of creation:||Sep 2013|
|Date of revision:|
|Contact details of provider:|| Postal: 60640 Frankfurt am Main, Germany|
Phone: +49 69 1344 0
Fax: +49 69 1344 6000
Web page: http://www.ecb.europa.eu/
More information through EDIRC
References listed on IDEAS
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.:
- Galí, Jordi & Perotti, Roberto, 2003.
"Fiscal Policy and Monetary Integration in Europe,"
CEPR Discussion Papers
3933, C.E.P.R. Discussion Papers.
- Simon Wren-Lewis & Lars Calmfors, 2011.
"What should fiscal councils do?,"
Economics Series Working Papers
537, University of Oxford, Department of Economics.
- Giovanni S.F. Bruno, 2004.
"Approximating the Bias of the LSDV Estimator for Dynamic Unbalanced Panel Data Models,"
KITeS Working Papers
159, KITeS, Centre for Knowledge, Internationalization and Technology Studies, Universita' Bocconi, Milano, Italy, revised Jul 2004.
- Bruno, Giovanni S.F., 2005. "Approximating the bias of the LSDV estimator for dynamic unbalanced panel data models," Economics Letters, Elsevier, vol. 87(3), pages 361-366, June.
- Tim Besley, 2002.
"Political institutions and policy choices: evidence from the United States,"
IFS Working Papers
W02/13, Institute for Fiscal Studies.
- Timothy Besley & Anne Case, 2003. "Political Institutions and Policy Choices: Evidence from the United States," Journal of Economic Literature, American Economic Association, vol. 41(1), pages 7-73, March.
- Besley, Timothy J. & Case, Anne, 2002. "Political Institutions and Policy Choices: Evidence from the United States," CEPR Discussion Papers 3498, C.E.P.R. Discussion Papers.
- Signe Krogstrup & Sébastien Wälti, 2008.
"Do fiscal rules cause budgetary outcomes?,"
Springer, vol. 136(1), pages 123-138, July.
- Signe Krogstrup & Sébastien Wälti, 2007. "Do fiscal rules cause budgetary outcomes?," IHEID Working Papers 15-2007, Economics Section, The Graduate Institute of International Studies, revised May 2007.
- Signe Krogstrup & Sébastien Wälti, 2007. "Do fiscal rules cause budgetary outcomes?," Trinity Economics Papers tep0607, Trinity College Dublin, Department of Economics.
- Jakob Haan & Richard Jong-A-Pin & Jochen Mierau, 2013.
"Do budgetary institutions mitigate the common pool problem? New empirical evidence for the EU,"
Springer, vol. 156(3), pages 423-441, September.
- Jakob de Haan & Richard Jong-A-Pin & Jochen O. Mierau, 2012. "Do Budgetary Institutions Mitigate the Common Pool Problem? New Empirical Evidence for the EU," KOF Working papers 12-303, KOF Swiss Economic Institute, ETH Zurich.
- Xavier Debrun & David Hauner & Manmohan S. Kumar, 2009. "Independent Fiscal Agencies," Journal of Economic Surveys, Wiley Blackwell, vol. 23(1), pages 44-81, 02.
- George Kopits & Steven A. Symansky, 1998. "Fiscal Policy Rules," IMF Occasional Papers 162, International Monetary Fund.
- F. Holm-Hadulla & S. Hauptmeier & P. Rother, 2012.
"The impact of expenditure rules on budgetary discipline over the cycle,"
Taylor & Francis Journals, vol. 44(25), pages 3287-3296, September.
- Fédéric Holm-Hadulla & Sebastian Hauptmeier & Philipp Rother, 2011. "The impact of expenditure rules on budgetary discipline over the cycle," Post-Print hal-00711446, HAL.
- Cândida Ferreira, 2009.
"Fiscal Behaviour in the European Union: Rules, Fiscal Decentralization and Government Indebtedness,"
Working Papers Department of Economics
2009/23, ISEG - School of Economics and Management, Department of Economics, University of Lisbon.
- Afonso, António & Hauptmeier, Sebastian, 2009. "Fiscal behaviour in the European Union: rules, fiscal decentralization and government indebtedness," Working Paper Series 1054, European Central Bank.
- Peter Wierts, 2008. "How do Expenditure Rules affect Fiscal Behaviour?," DNB Working Papers 166, Netherlands Central Bank, Research Department.
- Nina T Budina & Andrea Schaechter & Anke Weber & Tidiane Kinda, 2012. "Fiscal Rules in Response to the Crisis; Toward the "Next-Generation" Rules: A New Dataset," IMF Working Papers 12/187, International Monetary Fund.
- repec:fth:geneec:99.05 is not listed on IDEAS
- Jordi GalÌ & Roberto Perotti, 2003. "Fiscal policy and monetary integration in Europe," Economic Policy, CEPR;CES;MSH, vol. 18(37), pages 533-572, October.
When requesting a correction, please mention this item's handle: RePEc:ecb:ecbwps:20131588. 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: (Official Publications)
If references are entirely missing, you can add them using this form.