Did the Maastricht treaty matter for macroeconomic performance?
We explore the impact of the Maastricht treaty on fiscal and macroeconomic outcomes in the EU with the difference-in-difference methodology. Our dataset covers 23 OECD countries over the 1975-2006 period. EU 15 countries are classified as the treatment and eight non-EU OECD countries as the control group. The results indicate that the provisions in the Maastricht treaty have been either irrelevant or even harmful for fiscal and macroeconomic developments in the EU. Evidence for a detrimental impact of the Maastricht criteria is particularly strong for the period after the start of the third stage of EMU
|Date of creation:||2009|
|Date of revision:|
|Publication status:||Published in Kyklos 3.62(2009): pp. 331-358|
|Contact details of provider:|| Postal: |
Web page: http://mpra.ub.uni-muenchen.de
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.:
- Alexander Plekhanov & Raju Jan Singh, 2005.
"How Should Subnational Government Borrowing Be Regulated? Some Cross-Country Empirical Evidence,"
IMF Working Papers
05/54, International Monetary Fund.
- Alexander Plekhanov & Raju Singh, 2006. "How Should Subnational Government Borrowing Be Regulated?Some Cross-Country Empirical Evidence," IMF Staff Papers, Palgrave Macmillan, vol. 53(3), pages 4.
- Galí, Jordi & Perotti, Roberto, 2003.
"Fiscal Policy and Monetary Integration in Europe,"
CEPR Discussion Papers
3933, C.E.P.R. Discussion Papers.
- Stefan Collignon, 2004. "The end of the Stability and Growth Pact?," International Economics and Economic Policy, Springer, vol. 1(1), pages 15-19, 03.
- Corsetti, Giancarlo & Roubini, Nouriel, 1996. "European versus American Perspectives on Balanced-Budget Rules," American Economic Review, American Economic Association, vol. 86(2), pages 408-13, May.
- Jakob De Haan & Jan-Egbert Sturm, 2000. "Do financial markets and the Maastricht Treaty discipline governments? New evidence," Applied Financial Economics, Taylor & Francis Journals, vol. 10(2), pages 221-226.
- Robert P. Inman, 1996. "Do Balanced Budget Rules Work? U.S. Experience and Possible Lessons for the EMU," NBER Working Papers 5838, National Bureau of Economic Research, Inc.
- Busemeyer, Marius R., 2004. "Chasing Maastricht: The Impact of the EMU on the Fiscal Performance of Member States," European Integration online Papers (EIoP), European Community Studies Association Austria (ECSA-A), vol. 8, 07.
- Marco Buti & Gabriele Giudice, 2002. "Maastricht's Fiscal Rules at Ten: An Assessment," Journal of Common Market Studies, Wiley Blackwell, vol. 40(5), pages 823-848, December.
- James M. Poterba, 1993.
"State Responses to Fiscal Crisis: The Effects of Budgetary Institutionsand Politics,"
NBER Working Papers
4375, National Bureau of Economic Research, Inc.
- Poterba, James M, 1994. "State Responses to Fiscal Crises: The Effects of Budgetary Institutions and Politics," Journal of Political Economy, University of Chicago Press, vol. 102(4), pages 799-821, August.
- Rotte, Ralph & Zimmermann, Klaus F, 1998.
" Fiscal Restraint and the Political Economy of EMU,"
Springer, vol. 94(3-4), pages 385-406, March.
- Buti, Marco & Franco, Daniele & Ongena, Hedwig, 1998. "Fiscal Discipline and Flexibility in EMU: The Implementation of the Stability and Growth Pact," Oxford Review of Economic Policy, Oxford University Press, vol. 14(3), pages 81-97, Autumn.
- Joshua Angrist & Alan Krueger, 1998.
"Empirical Strategies in Labor Economics,"
98-7, Massachusetts Institute of Technology (MIT), Department of Economics.
- Marc Lombard, 2000. "Restrictive Macroeconomic Policies and Unemployment in the European Union," Review of Political Economy, Taylor & Francis Journals, vol. 12(3), pages 317-332.
- Soukiazis, Elias & Castro, Vitor, 2005. "How the Maastricht criteria and the Stability and Growth Pact affected real convergence in the European Union: A panel data analysis," Journal of Policy Modeling, Elsevier, vol. 27(3), pages 385-399, April.
- Busetti, Fabio & Forni, Lorenzo & Harvey, Andrew & Venditti, Fabrizio, 2006.
"Inflation convergence and divergence within the European Monetary Union,"
Working Paper Series
0574, European Central Bank.
- Fabio Busetti & Lorenzo Forni & Andrew Harvey & Fabrizio Venditti, 2007. "Inflation Convergence and Divergence within the European Monetary Union," International Journal of Central Banking, International Journal of Central Banking, vol. 3(2), pages 95-121, June.
- Hallett, Andrew Hughes & Lewis, John, 2008. "European Fiscal Discipline Before And After Emu: Crash Diet Or Permanent Weight Loss?," Macroeconomic Dynamics, Cambridge University Press, vol. 12(03), pages 404-424, June.
- Mariam Camarero & Javier Ordon Ez & Cecilio Tamarit, 2002. "Tests for interest rate convergence and structural breaks in the EMS: further analysis," Applied Financial Economics, Taylor & Francis Journals, vol. 12(6), pages 447-456.
- Geoffrey Garrett, 1993. "The Politics Of Maastricht," Economics and Politics, Wiley Blackwell, vol. 5(2), pages 105-123, 07.
- Signe Krogstrup & Sébastien Wälti, 2007.
"Do fiscal rules cause budgetary outcomes?,"
Trinity Economics Papers
tep0607, Trinity College Dublin, Department of Economics.
- Poterba, James M., 1995. "Balanced Budget Rules and Fiscal Policy: Evidence From the States," National Tax Journal, National Tax Association, vol. 48(3), pages 329-36, September.
- Christophe Blot & Francisco Serranito, 2006. "Convergence of fiscal policies in EMU: a unit-root tests analysis with structural break," Applied Economics Letters, Taylor & Francis Journals, vol. 13(4), pages 211-216.
When requesting a correction, please mention this item's handle: RePEc:pra:mprapa:30106. 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: (Ekkehart Schlicht)
If references are entirely missing, you can add them using this form.