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: Developing Countries.; Fiscal rules; Fiscal discipline; Treatment effect; Propensity Scores-Matching; Developing Countries (search for similar items in EconPapers)
Date: 2012
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Citations: View citations in EconPapers (74)

Published in Economic Modelling, 2012, 29, pp.1356-1369

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Persistent link: https://EconPapers.repec.org/RePEc:hal:journl:halshs-00704811

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