Ricardian fiscal regimes in the European Union

Antonio Afonso

No 558, Working Paper Series from European Central Bank

Abstract: The prevalence of either Ricardian or non-Ricardian fiscal regimes is important both for practical policy reasons and to assess fiscal sustainability, and this is of particular relevance for European Union countries. The purpose of this paper is to assess, with a panel data set, the empirical evidence concerning the existence of Ricardian fiscal regimes in EU-15 countries. The results give support to the Ricardian fiscal regime hypothesis throughout the sample period, and for sub-samples accounting for the dates of the Maastricht Treaty and for the setting-up of the Stability and Growth Pact. Additionally, electoral budget cycles also seem to play a role in fiscal behaviour. JEL Classification: C23, E62, H62

Keywords: European Union; fiscal regimes; panel data models (search for similar items in EconPapers)
Date: 2005-11
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Citations: View citations in EconPapers (29)

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Related works:
Journal Article: Ricardian fiscal regimes in the European Union (2008)
Working Paper: Ricardian Fiscal Regimes in the European Union (2005)
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Persistent link: https://EconPapers.repec.org/RePEc:ecb:ecbwps:2005558

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