Economiesuisse

About: Economiesuisse is a based out in . It is known for research contribution in the topics: Fiscal imbalance & Fiscal adjustment. The organization has 2 authors who have published 7 publications receiving 258 citations.

Age at School Entry and Intergenerational Educational Mobility

Abstract: We use Swiss data to test whether intergenerational educational mobility is affected by the age at which children first enter (primary) school. Early age at school entry significantly affects mobility and reduces the relative advantage of children of better educated parents.

The impact of referendums on the centralisation of public goods provision: a political economy approach

Abstract: The paper compares decision-making on the centralisation of public goods provision in the presence of regional externalities under representative and direct democratic institutions. A model with two regions, two public goods and regional spillovers is developed in which uncertainty over the true preferences of candidates makes strategic delegation impossible. The political economy argument against centralisation of Besley and Coate (J Public Econ 87:2611–2637, 2003) does therefore not apply. Instead, it is shown that the existence of rent extraction by delegates alone suffices to make cooperative centralisation more likely through representative democracy under reasonable assumptions. In the case of non-cooperative centralisation, the more extensive possibilities for institutional design under representative democracy increase the likelihood of centralisation. Direct democracy may thus be interpreted as a federalism-preserving institution.

Are Fiscal Adjustments less Successful in Decentralized Governments

Abstract: A common political claim is that decentralized governments undermine policy makers? ability to fight fiscal imbalance. This paper examines how different fiscal institutions influence the likeli-hood of a successful fiscal adjustment. Using a panel of the Swiss cantons from 1981 to 2001, we first analyze the episodes of tight fiscal policy and their macroeconomic consequences. Then, we empirically investigate the determinants of successful long-la¬sting deficit reductions. Contrary to the popular claim, we find that fiscal decentralization increases the probability of a successful fiscal consolidation. In addition, the results point to an important role of intergovernmental grants and the circumstances, in particular the size of fiscal imbalance in the years before the consolida-tion in determining a successful adjustment policy. Furthermore, coalition governments and large parliaments less likely implement successful fiscal stabilizations. Finally, there is some weak evidence that spending cuts are more promising in reaching a long-lasting fiscal adjustment than revenue increases.