Do Fiscal Rules Matter?
Bibliographic Data
| ID | 23367183 |
|---|---|
| Authors | Veronica Grembi (0000-0002-5405-320X, Copenhagen Business School), Tommaso Nannicini (0000-0002-9400-7494, Bocconi University), Ugo Troiano (0009-0007-1667-2265, Copenhagen Business School) |
| Year | 2016 |
| Volume | 8 |
| Issue | 3 |
| Pages | 1-30 |
| Publication date | 2016-07-01 |
| Peer Reviewed | Yes |
| Open Access | No |
| Type | ARTICLE |
| Venue | American Economic Journal Applied Economics (JOURNAL) |
| Journal identifiers | ISSN: 1945-7790 • E-ISSN: 1945-7782 |
| Publisher | American Economic Association (PUBLISHER • US) |
| DOI | 10.1257/app.20150076 |
| OpenAlex | W3122782960 |
| Language | EN |
| Citations received | 93 |
| References cited | 51 |
Fiscal rules are laws aimed at reducing the incentive to accumulate debt, and many countries adopt them to discipline local governments. Yet, their effectiveness is disputed because of commitment and enforcement problems. We study their impact applying a quasi-experimental design in Italy. In 1999, the central government imposed fiscal rules on municipal governments, and in 2001 relaxed them below 5,000 inhabitants. We exploit the before/after and discontinuous policy variation, and show that relaxing fiscal rules increases deficits and lowers taxes. The effect is larger if the mayor can be reelected, the number of parties is higher, and voters are older. (JEL E62, H71, H72, H74, R51)
Economics · Fiscal Policies and Political Economy · Fiscal Policy and Economic Growth · Monetary Policy and Economic Impact
Staying in power
Fiscal rules and electoral turnout
Public education provision, private schooling and income redistribution
Local financialization, household debt, and the great recession
Equality of opportunity and human capital accumulation
The effect of technology funding on school-level student proficiency
Childhood Medicaid Eligibility and Human Capital
Do fiscal rules cause better fiscal balances? A new instrumental variable strategy
Valuable legacy? The effect of inherited fiscal rules
Electoral thresholds and political representation
Politicians’ coherence and government debt
Decentralization and the duration of fiscal consolidation
Did military service during World War I affect the economic status of American veterans
Political Budget Cycles with Informed Voters
Pathbreakers? Women's Electoral Success and Future Political Participation
Carving Out
Watering Down Environmental Regulation in China
Regression Discontinuity Designs
Wasting public money to buy turnout
Enhanced Covid-19 Provider Relief, Hospital Finances, and Care for Medicare Inpatients
National and Supranational European Fiscal Rules
Regression discontinuity designs in education
Cashing in on culture
A Method for Disentangling Multiple Treatments from a Regression Discontinuity Design
The Surprising Impacts of Unionization
Improving Educational Pathways to Social Mobility
The Causal Effect of an Income Shock on Children’s Human Capital
The Devil is in the Details
The Effects of Fiscal Rules on Mexico’s Municipalities
Municipal Response to Fiscal and Governance Reforms
The unintended composition effect of the subnational government fiscal rules
Electoral incentives to target investment in roads
Low-wage import competition and populist backlash
Subnational public debt sustainability in Mexico
Fiscal rules and the reliability of public investment plans
Choosing not to lead
Fiscal rules and budget forecast errors of Italian municipalities
Fiscal rules to the test
Fiscal rules and economic cycles
Women and local public finance
Gender quotas and the selection of local politicians
Less fiscal oversight, more adjustment
Can gender quotas break the glass ceiling? Evidence from Italian municipal elections
Do national political parties matter? Evidence from Italian municipalities
On the optimality of policy choices in the face of biased beliefs, retrospective voting and the down-up problem
Fiscal equalization and the tax structure
Impact of the Community Reinvestment Act on small business employment in lower income neighborhoods
Compulsory voting and political participation
Fiscal Rules Cause Lower Debt
Data transparency and growth in developing economies during and after the global financial crisis
Administrative Delegation of Budgetary Powers and Fiscal Performance
The Causal Relationship Between Jurisdiction Size and Institutional Quality
Electoral rule and public sector efficiency
Stronger together? Assessing the causal effect of inter‐municipal cooperation on the efficiency of small Italian municipalities
The Long-Term Effects of Structural Discrimination on Public Safety
The effect of paid vacation on health
Did crop diversity criterion from CAP green payments affect both economic and environmental farm performances? Quasi-experimental evidence from France
Culture and agricultural biodiversity conservation
Incentives, penalties, and rural air pollution
Branchless banking
The effects of expanding worker rights to children
The Municipal Administration Quality Index
Unveiling the Price of Obscenity
Data Transparency and Long-Run Growth
Uniform Inference on Quantile Effects under Sharp Regression Discontinuity Designs
Does Affirmative Action Incentivize Schooling? Evidence from India
Les politiques de quotas en faveur des femmes ont-elles brisé ou surélevé le plafond de verre
Spillover effects in local public spending
Partisan-Electoral Cycles in Public Employment
Immigration, Public Housing and Support for the French National Front
Fiscal Rules, Corruption, and Electoral Accountability
Environmental Regulation, Labor Income Share, and Implications for Inequality
Do fiscal rules undermine public investments? A review of empirical evidence
The Role of Local Voting Rights for Non-Naturalized Immigrants
Does urban development influence crime? Evidence from Philadelphia’s new zoning regulations
Public Debt in a Federal State
The impact of place‐based policies on interpersonal income inequality
Old and Young Politicians
Local governments’ responses to the fiscal stress label
Uncovering the effect of local government debt brakes in Germany using synthetic controls
Deadly Populism
Solving Collective Action Problems under Separated and Shared Powers
Polity Size and the Congested Budget
Off-Cycle and Out of Office
Limited Impact of Introducing Proportional Representation on Women’s Representation
Identifying the Source of Incumbency Advantage through a Constitutional Reform
Regression Discontinuity Designs Based on Population Thresholds
How Patronage Delivers
When Do Gender Quotas Change Policy? Evidence from Household Toilet Provision in India
Sir! I'd Rather Go to School, Sir
Large Means-Tested Pensions with Informal Labor Markets
Patient cost-sharing, mental health care and inequalities
Rising Government Debt
Fiscal Institutions and Fiscal Performance
Does Electoral Accountability Affect Economic Policy Choices? Evidence from Gubernatorial Term Limits
The Value of School Facility Investments
Endogenous Political Institutions
Why a Stubborn Conservative would Run a Deficit
Active and Passive Waste in Government Spending
Do Better Paid Politicians Perform Better? Disentangling Incentives From Selection
Robust Data-Driven Inference in the Regression-Discontinuity Design
The Politician and the Judge
Tied to the mast? National fiscal rules in the European Union
Identification and Estimation of Treatment Effects with a Regression-Discontinuity Design
Optimal fiscal and monetary policy in an economy without capital
Optimal Retention in Agency Problems
A Positive Theory of Fiscal Deficits and Government Debt
Does Head Start Improve Children's Life Chances? Evidence from a Regression Discontinuity Design
Robust Nonparametric Confidence Intervals for Regression-Discontinuity Designs
Manipulation of the running variable in the regression discontinuity design
Regression discontinuity designs
Regression Discontinuity Designs in Economics
Salience and Taxation
Are Government Bonds Net Wealth
On the Determination of the Public Debt
State Responses to Fiscal Crises
An Empirical Investigation of the Strategic Use of Debt
Women and Power
Who Pays for it? The Heterogeneous Wage Effects of Employment Protection Legislation
Divided Government, Fiscal Institutions, and Budget Deficits
| Unique citing works | 93 |
|---|---|
| Citations per year | 9,3 |
| Citation span | 2016 - 2026 (11) |
| Citation velocity | current |
| Highly cited | No |
| Citation types | Neutral: 77 |