Fiscal decentralization, fiscal rules and fiscal discipline

Fiscal decentralization (FD) and fiscal rules (FR) are institutional mechanisms that are implemented by varying degrees in increasing number of countries. This paper investigates empirically the effect of FR on the effectiveness of FD in achieving fiscal discipline. Panel evidence strongly supports that balanced budget and expenditure rules help FD to achieve this goal, while debt rule has a direct disciplinary effect.

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Year of publication:	2013
Authors:	Neyapti, Bilin
Published in:	Economics Letters. - Elsevier, ISSN 0165-1765. - Vol. 121.2013, 3, p. 528-532
Publisher:	Elsevier
Subject:	Fiscal institutions \| Fiscal decentralization \| Fiscal rules \| Budget deficits

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Type of publication:	Article
Classification:	E62 - Fiscal Policy; Public Expenditures, Investment, and Finance; Taxation ; H72 - State and Local Budget and Expenditures ; H77 - Intergovernmental Relations; Federalism ; O2 - Development Planning and Policy
Source:	RePEc - Research Papers in Economics

Persistent link: https://www.econbiz.de/10010729445