Do National Numerical Fiscal Rules really shape fiscal behaviours in developing countries? A treatment effect evaluation
TLDR
In this paper, the authors analyzed the effect of National Numerical Fiscal Rules (FRs) upon fiscal discipline in 74 developing countries over the period 1990-2007, and found 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.About:
This article is published in Economic Modelling.The article was published on 2012-07-01 and is currently open access. It has received 59 citations till now. The article focuses on the topics: Fiscal union.read more
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Do Budget Rules Work
TL;DR: In this article, the authors describe the existing evidence on how budget rules affect fiscal policy outcomes and contrast the institutional irrelevance view, which holds that budget rules can be circumvented by modifying accounting practices and changing the nominal timing or other classification of taxes and expenditures, with the public choice view, in which fiscal institutions represent important constraints on the behavior of political actors.
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Do fiscal rules constrain fiscal policy? A meta-regression-analysis
TL;DR: In this paper, a meta-regression analysis for the budgetary impact of numerical fiscal rules is presented, based on 30 studies published in the last decade, and a consensus estimate with respect to the level of statistical significance, provide suggestive evidence for the effect size, and identify study features of relevance for the measured impact of fiscal rules.
Second-Generation Fiscal Rules: Balancing Simplicity, Flexibility, and Enforceability
TL;DR: In this article, the SDN takes stock of past experiences, reviews recent reforms, and presents new research on the effectiveness of rules, and proposes guiding principles for future reforms to strike a better balance between simplicity, flexibility, and enforceability.
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National numerical fiscal rules: Not complied with, but still effective?
TL;DR: In this paper, the authors investigate the effects of non-compliance with national numerical fiscal rules on fiscal policy in 11 EU member states with 23 fiscal rules in place from 1994 to 2012, and show that if countries do not comply with their fiscal rule in the year or forecast before, there is a strong downward tendency of the constrained variable towards the numerical limit.
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Is fiscal policy always counter- (pro-) cyclical? The role of public debt and fiscal rules
TL;DR: In this article, the authors investigate the reaction of fiscal policy to the business cycle in a panel of 56 developed, emerging and developing economies over 1990-2011 and reveal a non-linear response of the government's response to a business cycle, conditional upon the outstanding debt stock.
References
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The central role of the propensity score in observational studies for causal effects
TL;DR: The authors discusses the central role of propensity scores and balancing scores in the analysis of observational studies and shows that adjustment for the scalar propensity score is sufficient to remove bias due to all observed covariates.
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Instrumental variables regression with weak instruments
TL;DR: In this paper, the authors developed asymptotic distribution theory for instrumental variable regression when the partial correlation between the instruments and a single included endogenous variable is weak, here modeled as local to zero.
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Propensity score-matching methods for nonexperimental causal studies
Rajeev Dehejia,Sadek Wahba +1 more
TL;DR: In this article, the authors consider causal inference and sample selection bias in nonexperimental settings in which few units in the nonex-experiment comparison group are comparable to the treatment units, and selecting a subset of comparison units similar to treatment units is difficult because units must be compared across a high-dimensional set of pre-treatment characteristics.
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Matching As An Econometric Evaluation Estimator
TL;DR: In this article, a rigorous distribution theory for kernel-based matching is presented, and the method of matching is extended to more general conditions than the ones assumed in the statistical literature on the topic.
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The Case for Restricting Fiscal Policy Discretion
Antonio Fatás,Ilian Mihov +1 more
TL;DR: This paper studied the effects of discretionary fiscal policy on output volatility and economic growth using data for 91 countries and found that governments that use fiscal policy aggressively induce significant macroeconomic instability, and that the volatility of output caused by discretionary policy lowers economic growth by more than 0.8 percentage points.