Determinants of fiscal rules

Badinger, Harald and Reuter, Wolf Heinrich (2017) Determinants of fiscal rules. Applied Economics Letters, 24 (3). pp. 154-158. ISSN 1350-4851


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This paper empirically assesses determinants of countries' fiscal rules suggested by the political science, sociology, and economics literature. We find several of these variables to be related to the stringency of fiscal rules, providing indirect evidence for the relevance of governments' deficit bias. These determinants may also serve as instruments in models with (endogenous) fiscal rules as explanatory variable.

Item Type: Article
Additional Information: To see the final version of this paper please visit the publisher's website. Access to the published version requires a subscription. This is an Accepted Manuscript of this article published by Taylor & Francis in Applied Economics Letters on 13 May 2016, available online:" Financial support by the Oesterreichische Nationalbank (OeNB-Anniversary-Fund, project number: 15469) is gratefully acknowledged.
Keywords: Fiscal Rules, Deficit bias, Instrumental Variables
Classification Codes: JEL E62, H30, H60
Divisions: Departments > Volkswirtschaft > Internationale Wirtschaft
Forschungsinstitute > Europafragen
Version of the Document: Accepted for Publication
Depositing User: Gertraud Novotny
Date Deposited: 22 Mar 2017 12:45
Last Modified: 04 Mar 2019 08:28
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