Vertical Effects of Fiscal Rules - The Swiss Experience

Heiko Burret () and Lars Feld

No 5043, CESifo Working Paper Series from CESifo

Abstract: Formal fiscal rules have been introduced in many countries throughout the world. While most studies focus on intra]jurisdictional effects of fiscal rules, vertical impacts on the finances of other levels of governments have yet to be explored thoroughly. The paper investigates the influence of Swiss cantonal debt brakes on municipal finances during the years 1980]2011 by examining cantonal aggregated and disaggregated local data. A Difference]in]Differences estimation (two-way fixed effects) provides little evidence that budget constraints at the cantonal level affect municipal finances and fiscal decentralization, respectively.

Keywords: fiscal rules; vertical effects; fiscal shocks; decentralization; sub-national finances (search for similar items in EconPapers)
JEL-codes: H60 H72 H74 H77 (search for similar items in EconPapers)
Date: 2014
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (21)

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Related works:
Journal Article: Vertical effects of fiscal rules: the Swiss experience (2018)
Working Paper: Vertical effects of fiscal rules: The Swiss experience (2016)
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Persistent link: https://EconPapers.repec.org/RePEc:ces:ceswps:_5043

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