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Do national numerical fiscal rules really shape fiscal behaviours in developing countries? A treatment effect evaluation

Author

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  • René Tapsoba

    (CERDI - Centre d'Études et de Recherches sur le Développement International - UdA - Université d'Auvergne - Clermont-Ferrand I - CNRS - Centre National de la Recherche Scientifique)

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.

Suggested Citation

  • René Tapsoba, 2012. "Do national numerical fiscal rules really shape fiscal behaviours in developing countries? A treatment effect evaluation," Post-Print halshs-00704811, HAL.
    • Handle: RePEc:hal:journl:halshs-00704811
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    More about this item

    Keywords

    Developing Countries.; Fiscal rules; Fiscal discipline; Treatment effect; Propensity Scores-Matching; Developing Countries;
    All these keywords.

    JEL classification:

    • H62 - Public Economics - - National Budget, Deficit, and Debt - - - Deficit; Surplus
    • H61 - Public Economics - - National Budget, Deficit, and Debt - - - Budget; Budget Systems
    • H11 - Public Economics - - Structure and Scope of Government - - - Structure and Scope of Government

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