Holm-Hadulla, Fédéric; Hauptmeier, Sebastian; Rother, … - European Central Bank - 2010
We study the impact of numerical expenditure rules on the propensity of governments to deviate from expenditure targets … mitigated by numerical expenditure rules. These hypotheses are tested against data from a panel of EU Member States. Our key … changes in the output gap, and (ii) numerical expenditure rules reduce this pro-cyclical bias. Moreover, the pro …