Do National Numerical Fiscal Rules Really Shape Fiscal Behaviours in Developing Countries? A Treatment Effect Evaluation

Tapsoba, René

Do National Numerical Fiscal Rules Really Shape Fiscal Behaviours in Developing Countries? A Treatment Effect Evaluation

Abstract: This paper analyses the effect of National Numerical Fiscal Rules (FRs) upon fiscal discipline in 74 developing countries over the period 1990-2007. It is the first study that assesses the impact of FRs on budgetary outcomes while controlling for the self-selection problem. It finds that the effect of FRs on structural fiscal balance is significantly positive, robust to a variety of alternative specifications, and varies with the type of FRs. It also finds that the treatment effect differs according to countries characteristics: number of FRs, time length since FRs adoption, presence of supranational FRs, government fractionalisation and government stability.

Keywords: Fiscal rules; Fiscal discipline; Treatment effect; Propensity Scores-Matching; developing countries (search for similar items in EconPapers)
Date: 2012-02-07
Note: View the original document on HAL open archive server: https://shs.hal.science/halshs-00667201
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Citations: View citations in EconPapers (13)

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