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Fiscal policy institutions and history

David Cuberes () and Andrew Mountford ()

Working Papers. Serie AD from Instituto Valenciano de Investigaciones Económicas, S.A. (Ivie)

Abstract: This paper shows that historical variables can explain a significant part of discretionary government spending across countries. We argue that these results provide evidence in favor of Besley and Persson’s (2009) hypothesis that institutional quality or state capacity is historically determined and further that institutional quality determines, in part, economic policy.

Keywords: Fiscal policy; discretion; institutions; state capacity (search for similar items in EconPapers)
JEL-codes: E61 E62 (search for similar items in EconPapers)
Pages: 20 pages
Date: 2012-01
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Published by Ivie

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http://www.ivie.es/downloads/docs/wpasad/wpasad-2012-02.pdf Fisrt version / Primera version, 2012 (application/pdf)

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Persistent link: https://EconPapers.repec.org/RePEc:ivi:wpasad:2012-02

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