Back to Search
Start Over
How do fiscal rules shape governments' spending behavior?
- Source :
- Economic Inquiry; Apr2023, Vol. 61 Issue 2, p322-341, 20p, 8 Charts
- Publication Year :
- 2023
-
Abstract
- At odds with the large literature devoted to the fiscal discipline effects of fiscal rules, only few contributions investigate their impact on public spending. Estimations based on the entropy balancing method reveal the following causal effects: fiscal rules significantly reduce total public spending and public consumption, leave public investment mostly unaffected, and increase the public investment‐to‐public consumption ratio. Moreover, the type of fiscal rule and countries' level of economic development influence the way fiscal rules affect public spending. Lastly, fiscal rules' features are a major driving force of the way governments change public spending in the presence of fiscal rules. [ABSTRACT FROM AUTHOR]
- Subjects :
- PUBLIC spending
CONSUMPTION (Economics)
PUBLIC investments
ECONOMIC development
Subjects
Details
- Language :
- English
- ISSN :
- 00952583
- Volume :
- 61
- Issue :
- 2
- Database :
- Complementary Index
- Journal :
- Economic Inquiry
- Publication Type :
- Academic Journal
- Accession number :
- 162014035
- Full Text :
- https://doi.org/10.1111/ecin.13120