(Un-)intended effects of fiscal rules Heiko T. Burret, Lars P. Feld
By: Burret, Heiko T
.
Contributor(s): Feld, Lars P.
Material type: 
ArticlePublisher: 2018Subject(s): DERECHO TRIBUTARIO | POLITICA FISCAL | POLITICA DE GASTO PUBLICO | CICLOS ECONOMICOS | SUIZAOnline resources: Click here to access online
In:
European Journal of Political Economy n. 52, 2018, p. 166-191Summary: The paper investigates the fiscal effects of Swiss cantonal debt brakes by taking explicitly into account the rules’ coverage. An in-depth analysis provides unique evidence that suggests the
following: First, fiscal rules reduce public deficits. The effect is stronger the better the analyzed budget position corresponds with the variable targeted by the rules. Second, cantonal debt
brakes exhibit some unintended effects, i.e., an evasion into unconstrained accounts, emphasizing the importance of constraining all accounts. Third, the existence of political budget cycles depends on the institutional context, i.e., the timing of elections and the presence of debt brakes.
Fifth, cantonal debt brakes dampen the fiscal deterioration during unexpected deficit shocks by more rapid fiscal adjustments.
| Item type | Current location | Home library | Call number | Status | Date due | Barcode |
|---|---|---|---|---|---|---|
| Artículos | IEF | IEF | OP 1912/2018/52-1 (Browse shelf) | Available | OP 1912/2018/52-1 |
Disponible únicamente en formato electrónico a través de la Biblioteca del IEF.
Resumen.
The paper investigates the fiscal effects of Swiss cantonal debt brakes by taking explicitly into account the rules’ coverage. An in-depth analysis provides unique evidence that suggests the
following: First, fiscal rules reduce public deficits. The effect is stronger the better the analyzed budget position corresponds with the variable targeted by the rules. Second, cantonal debt
brakes exhibit some unintended effects, i.e., an evasion into unconstrained accounts, emphasizing the importance of constraining all accounts. Third, the existence of political budget cycles depends on the institutional context, i.e., the timing of elections and the presence of debt brakes.
Fifth, cantonal debt brakes dampen the fiscal deterioration during unexpected deficit shocks by more rapid fiscal adjustments.
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