IDEAS home Printed from https://ideas.repec.org/p/ise/isegwp/wp072012.html

Do fiscal rules matter for growth?

Author

Listed:
  • António Afonso
  • João Tovar Jalles

Abstract

We study the relevance of fiscal rules for growth in an EU panel. Our results show that they foster growth, while stricter fiscal rules mitigate the adverse impact on growth from big governments. Moreover, more recent EU member states have gained from the implementation of fiscal rules.

Suggested Citation

  • António Afonso & João Tovar Jalles, 2012. "Do fiscal rules matter for growth?," Working Papers Department of Economics 2012/07, ISEG - Lisbon School of Economics and Management, Department of Economics, Universidade de Lisboa.
    • Handle: RePEc:ise:isegwp:wp072012
    as

    Download full text from publisher

    File URL: https://depeco.iseg.ulisboa.pt/wp/wp072012.pdf
    Download Restriction: no
    ---><---

    Other versions of this item:

    References listed on IDEAS

    as
    1. Cândida Ferreira, 2009. "Fiscal Behaviour in the European Union: Rules, Fiscal Decentralization and Government Indebtedness," Working Papers Department of Economics 2009/23, ISEG - Lisbon School of Economics and Management, Department of Economics, Universidade de Lisboa.
    2. Peter Wierts, 2008. "How do Expenditure Rules affect Fiscal Behaviour?," DNB Working Papers 166, Netherlands Central Bank, Research Department.
    3. M. Hashem Pesaran, 2021. "General diagnostic tests for cross-sectional dependence in panels," Empirical Economics, Springer, vol. 60(1), pages 13-50, January.
    4. John C. Driscoll & Aart C. Kraay, 1998. "Consistent Covariance Matrix Estimation With Spatially Dependent Panel Data," The Review of Economics and Statistics, MIT Press, vol. 80(4), pages 549-560, November.
    5. Roel Beetsma & Massimo Giuliodori, 2010. "Discretionary Fiscal Policy: Review and Estimates for the EU," CESifo Working Paper Series 2948, CESifo.
    6. Andreas Bergh & Magnus Henrekson, 2011. "Government Size And Growth: A Survey And Interpretation Of The Evidence," Journal of Economic Surveys, Wiley Blackwell, vol. 25(5), pages 872-897, December.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Krieger, Tim & Meierrieks, Daniel, 2020. "Population size and the size of government," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, vol. 61, pages 1-1.
    2. David Bartolini & Agnese Sacchi & Simone Salotti & Raffaella Santolini, 2018. "Fiscal Decentralization in Times of Financial Crises," CESifo Economic Studies, CESifo Group, vol. 64(3), pages 456-488.
    3. Teng, Meixuan & Burke, Paul J. & Liao, Hua, 2019. "The demand for coal among China's rural households: Estimates of price and income elasticities," Energy Economics, Elsevier, vol. 80(C), pages 928-936.
    4. Carmen Broto & Javier Díaz-Cassou & Aitor Erce-Domínguez, 2008. "Measuring and explaining the volatility of capital flows towards emerging countries," Working Papers 0817, Banco de España.
    5. Skare, Marinko & Gavurova, Beata & Sinkovic, Dean, 2023. "Regional aspects of financial development and renewable energy: A cross-sectional study in 214 countries," Economic Analysis and Policy, Elsevier, vol. 78(C), pages 1142-1157.
    6. Mamba, Essotanam & Ali, Essossinam, 2022. "Do agricultural exports enhance agricultural (economic) growth? Lessons from ECOWAS countries," Structural Change and Economic Dynamics, Elsevier, vol. 63(C), pages 257-267.
    7. Gren, Ing-Marie & Carlsson, Mattias, 2012. "Revealed payments for biodiversity protection in Swedish forests," Forest Policy and Economics, Elsevier, vol. 23(C), pages 55-62.
    8. Wasi Ul Hassan Shah & Rizwana Yasmeen & Muddassar Sarfraz & Larisa Ivascu, 2023. "The Repercussions of Economic Growth, Industrialization, Foreign Direct Investment, and Technology on Municipal Solid Waste: Evidence from OECD Economies," Sustainability, MDPI, vol. 15(1), pages 1-14, January.
    9. Kai Daniel Schmid & Michael Schmidt, 2012. "EMU and the Renaissance of Sovereign Credit Risk Perception," IAW Discussion Papers 87, Institut für Angewandte Wirtschaftsforschung (IAW).
    10. Benedette Nneka Okezie & Tobechi Faith Agbanike & Nwaonuma Douglas Nnachi & Nkama Nnachi Otta & Chinazaekpere Nwani & Beatrice Chinyere Eneje & Ijeoma Perpetual Onuoha & Hilary Ikechukwu Nnam, 2025. "Does fiscal burden impede green transition? Income, taxation, clean energy, and ecological sustainability in sub‐Saharan Africa," Natural Resources Forum, Blackwell Publishing, vol. 49(1), pages 177-196, February.
    11. José Alberto Fuinhas & Daniela Castilho & Volkan Kaymaz & Matheus Koengkan, 2025. "Is tourism a primary driver of inflation in house prices? The case of European countries," International Review of Economics, Springer;Happiness Economics and Interpersonal Relations (HEIRS), vol. 72(2), pages 1-28, December.
    12. Eleftherios Spyromitros, 2020. "The effect of corruption on stock market volatility," Journal of Applied Finance & Banking, SCIENPRESS Ltd, vol. 10(2), pages 1-6.
    13. Yunus Karaömer & Arif Eser Guzel, 2024. "Effect of Economic Policy Uncertainty on Stock Returns: Analysing the Moderating Role of Government Size," Politická ekonomie, Prague University of Economics and Business, vol. 2024(1), pages 50-72.
    14. Afolabi, Joshua Adeyemi, 2025. "Advancing the circular economy in Europe: The role of eco-innovation, economic complexity, and digitalization," Technology in Society, Elsevier, vol. 83(C).
    15. Hikmet Akyol & Selim Basar, 2024. "Empirical Analysis of Turkish Banking Sector Institutional and Macroeconomic Determinants of Risks," Istanbul Journal of Economics-Istanbul Iktisat Dergisi, Istanbul University, Faculty of Economics, vol. 73(74-1), pages 59-98, June.
    16. Linus Nyiwul & Zhining Hu & Niraj P. Koirala & Hannah Wasson, 2025. "Economic uncertainty and renewable energy investment," International Economics and Economic Policy, Springer, vol. 22(3), pages 1-36, July.
    17. Gianko Michailidis & Concepció Patxot & Meritxell Solé, 2019. "Do pensions foster education? An empirical perspective," Applied Economics, Taylor & Francis Journals, vol. 51(38), pages 4127-4150, August.
    18. Eduardo Polloni-Silva & Diogo Ferraz & Flávia de Castro Camioto & Daisy Aparecida do Nascimento Rebelatto & Herick Fernando Moralles, 2021. "Environmental Kuznets Curve and the Pollution-Halo/Haven Hypotheses: An Investigation in Brazilian Municipalities," Sustainability, MDPI, vol. 13(8), pages 1-19, April.
    19. George Halkos & Stylianos Nomikos & Antonis Skouloudis, 2021. "Revisiting ISO 14001 diffusion among national terrains: panel data evidence from OECD countries and the BRIICS," Environmental Economics and Policy Studies, Springer;Society for Environmental Economics and Policy Studies - SEEPS, vol. 23(4), pages 781-803, October.
    20. Asane-Otoo, Emmanuel, 2015. "Carbon footprint and emission determinants in Africa," Energy, Elsevier, vol. 82(C), pages 426-435.

    More about this item

    Keywords

    ;
    ;
    ;
    ;

    JEL classification:

    • C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models
    • E62 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - Fiscal Policy; Modern Monetary Theory
    • H60 - Public Economics - - National Budget, Deficit, and Debt - - - General

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ise:isegwp:wp072012. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Vitor Escaria (email available below). General contact details of provider: https://aquila.iseg.ulisboa.pt/aquila/departamentos/EC .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.