Ineffective fiscal rules? The effect of public sector accounting standards on budgets, efficiency, and accountability

Florian Dorn, Stefanie Gaebler and Felix Roesel
Authors registered in the RePEc Author Service: Stefanie Gäbler

Munich Reprints in Economics from University of Munich, Department of Economics

Abstract: International organizations have encouraged national governments to switch from traditional cash-based to business-like accrual accounting, on the presumption that long-run benefits may outweigh substantial implementation and operating costs.We use a quasi-experimental setting to evaluate whether changing public sector accounting standards is justified. Some local governments in the German federal state of Bavaria introduced accrual accounting while others retained cash-based accounting. Difference-in-differences and event-study results do not show that (capital) expenditures, public debt, voter turnout, or government efficiency developed differently after changes in accounting standards. Operating costs of administration, however, increase under accrual accounting.

Date: 2019
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Citations: View citations in EconPapers (2)

Published in Public Choice (2019)

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Related works:
Journal Article: Ineffective fiscal rules? The effect of public sector accounting standards on budgets, efficiency, and accountability (2021)
Working Paper: Ineffective Fiscal Rules? The Effect of Public Sector Accounting Standards on Budgets, Efficiency, and Accountability (2019)
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Persistent link: https://EconPapers.repec.org/RePEc:lmu:muenar:78263

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