To consider legal standards in empirical research designs, the qualitative information of the law needs to be transferred in a numerical variable. The challenge in creating such a variable consists in finding the right balance between high information density and transparency while keeping the...

In the early 2020s sharp surge of inflation, unprecedentedly high levels of government debt and deficits fueled attention for the Fiscal Theory of the Price Level (FTPL). This theoretical framework for fiscally induced inflation is well-known and controversially discussed. However, empirical...

The zero lower bound era introduced a new perspective on the functionality of fiscal rules. With such low interest rates, the argument goes, extending debt financed public investment spending would be reasonable and thus existing fiscal rules too restrictive. Using data of Swiss cantonal public...

The trade-off between consistent (rule-based) and optimal fiscal policy became evident in the zero lower bound era. With such low interest rates, the argument goes, optimal fiscal policy required extending debt financed public investment spending. But while fiscal rules ensured consistency, they...