Determinants of fiscal rules

Harald Badinger and Wolf Heinrich Reuter

Applied Economics Letters, 2017, vol. 24, issue 3, 154-158

Abstract: This article 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.

Date: 2017
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DOI: 10.1080/13504851.2016.1173171

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