Simulation der Schuldenbremse und der Schuldenschranke für die deutschen Bundesländer

This paper analyses the shortcomings of the current budget rules for the Bundesländer, especially the definition of public investment that is used as a deficit ceiling in Germany. Two alternative budget rules are analysed, the Swiss debt brake as well as a version incorporating a golden rule presented by the the German Council of Economic Experts. A simulation reveals the necessary consolidation path, the loss of benefits, and the recursive development of public debt. In addition to the standard simulation method we present a politico-economic approach that leads to new results.