scholarly journals The impact of national fiscal rules on the stabilisation function of fiscal policy

2015 ◽  
Vol 37 ◽  
pp. 1-20 ◽  
Author(s):  
Agnese Sacchi ◽  
Simone Salotti
Keyword(s):  
Fiscal Policy ◽  
Fiscal Rules ◽  
The Impact

scholarly journals The Impact of Fiscal Rules on Fiscal Policy Volatility

2010 ◽  
Vol 13 (2) ◽  
pp. 205-231 ◽  
Author(s):  
Michał Brzozowski ◽  
Joanna Siwińska-Gorzelak
Keyword(s):  
Fiscal Policy ◽  
Fiscal Rules ◽  
The Impact

scholarly journals The impact of fiscal councils on the budgetary consolidation

2017 ◽  
Vol 6 (1) ◽  
pp. 15-23 ◽  
Author(s):  
Ante Žigman ◽  
Martina Jergović
Keyword(s):  
Fiscal Policy ◽  
Financial Crisis ◽  
Fiscal Rules ◽  
Easy Access ◽  
Finance Management ◽  
Time Period ◽  
Before And After ◽  
The Media ◽  
Short Time ◽  
The Impact

Fiscal councils are independent institutions that play an important role in execution of fiscal rules and budgetary discipline through their realistic and unbiased macroeconomic and budgetary analysis and projections. It is important that the fiscal councils have easy access to the media to ensure that their analyses reach the wider public, and influence creators of fiscal policy. This paper analyzes the influence of fiscal councils on budget balance and public debt in period before and after financial crisis. The member states that had functioning fiscal councils before the financial crisis, on average, manage their public finances better than those who founded them after the beginning of crisis. Additionally, supervision of the enforcements of fiscal rules from fiscal boards is already showing positive results in this short time period. Fiscal councils are extremely important to ensure a healthy basis for conducting fiscal policy and to decrease the influence of politics on public finance management.

scholarly journals Przejrzystość fiskalna a stabilność polskiego systemu finansów publicznych

2017 ◽  
pp. 31-44
Author(s):  
Elżbieta Malinowska-Misiąg
Keyword(s):  
Public Finance ◽  
Fiscal Policy ◽  
Significant Error ◽  
Fiscal Rules ◽  
Fiscal Transparency ◽  
Budgetary Institutions ◽  
Quality And Reliability ◽  
The Impact ◽  
Sector Data

The aim of the article is to verify the impact of fiscal transparency on the quality and reliability of public finance sector data which in turn are the basis for formulating conclusions on the effectiveness of fiscal policy and the sustainability of public finance. The article identifies and provides examples of the primary areas that impair fiscal transparency in Poland, particularly: the scope of public finance sector, the extra-budgetary institutions and fiscal rules. In conclusion the author underlines that the findings based on published budgetary data can be subject to a significant error.

scholarly journals The impact of national fiscal rules and government effectiveness on the procyclicality of fiscal policy in the Asia-Pacific countries

2020 ◽  
Vol 9 (1) ◽  
pp. 35-43
Author(s):  
Chiung-Ju Huang ◽  
Yuan-Hong Ho
Keyword(s):  
Fiscal Policy ◽  
Emerging Economies ◽  
Generalized Method Of Moments ◽  
Government Expenditure ◽  
Fiscal Rules ◽  
Asia Pacific ◽  
Government Effectiveness ◽  
Advanced Economies ◽  
Fiscal Rule ◽  
The Impact

Fiscal rules are institutional approaches aimed at maintaining fiscal credibility and fiscal discipline and usually set a numerical indicator. Currently, there are two sources of fiscal rules. One is the International Monetary Fund (IMF) dataset that provides country-specific details on various characteristics of rules for 96 countries and the other is European Commission – numerical fiscal rules index that provides the fiscal rule index for 28 member countries. Because of the lack of fiscal rule index for the Asia-Pacific countries, the purpose of this study is to construct the fiscal rule index for 8 Asia-Pacific countries from 1996 to 2015 by using the IMF dataset. Then, this study utilizes the Panel Generalized Method of Moments and the constructed fiscal rule index to investigate the impact of fiscal rules and government effectiveness on the procyclicality of fiscal policy in 8 Asia-Pacific countries, classified as “advanced economies” and “emerging economies”. The empirical results show that fiscal rules and government effectiveness are effective in reducing the procyclicality of government expenditure only in advanced economies. Additionally, the interaction of fiscal rules and government effectiveness has a negative impact on the procyclicality of government expenditure for both advanced economies and emerging economies but the effect is not significant in emerging economies.

scholarly journals Does the Credible Fiscal Policy Support the Prices Stabilization?

2015 ◽  
Vol 15 (2) ◽  
pp. 137-156 ◽  
Author(s):  
Haryo Kuncoro
Keyword(s):  
Fiscal Policy ◽  
Inflation Targeting ◽  
Inflation Rate ◽  
Empirical Studies ◽  
Fiscal Sustainability ◽  
Policy Support ◽  
Fiscal Rules ◽  
Stabilization Policy ◽  
Price Stabilization ◽  
The Impact

Abstract This paper aims at analyzing the co-movement between fiscal policy and monetary policy rules in the context of price stabilization. More specifically, we observe the potential impact of fiscal policy credibility on the price stabilization in the inflation targeting framework. Motivated by the fact that empirical studies concerning this aspect are still limited, we take the case of Indonesia over the period 2001-2013. Based on the quarterly data analysis, we found that the impact of credibility typically depends on characteristics of fiscal rules commitment. On one hand, the credibility of debt rule reduces the inflation rate. In contrast, the incredible deficit rule policy does not have any impact on the inflation rate and therefore does not support to inflation targeting. Given those results, we conclude that credibility matters in stabilizing price levels. Accordingly, those findings suggest tightening coordination between monetary and fiscal policy to maintain fiscal sustainability in accordance with price stabilization policy

scholarly journals A Possible Approach to Fiscal Rules in Small Islands — Incorporating Natural Disasters and Climate Change

2019 ◽  
Vol 2019 (186) ◽  
Author(s):  
Ryota Nakatani
Keyword(s):  
Climate Change ◽  
Developing Countries ◽  
Fiscal Policy ◽  
Natural Disasters ◽  
Pacific Islands ◽  
Fiscal Rules ◽  
Policy Framework ◽  
Small Island ◽  
Policy Dialogue ◽  
The Impact

A big challenge for the economic development of small island countries is dealing with external shocks. The Pacific Islands are vulnerable to natural disasters, climate change, commodity price changes, and uncertain donor grants. The question that arises is how should small developing countries formulate a fiscal policy to achieve economic stability and fiscal sustainability when prone to various shocks? We study how natural disasters affect long-term debt dynamics and propose fiscal policy rules that could help insulate the economy from such unexpected shocks. We propose fiscal rules to address these shocks and uncertainties using the example of Papua New Guinea. Our study finds the advantages of expenditure rules, especially a recurrent expenditure rule based on non-resource and non-grant revenue, interdependently determined by government debt and budget balance targets with expected disaster shocks. This paper contributes to the literature and policy dialogue by theoretically analyzing the impact of natural disasters on debt sustainability and proposing fiscal rules against natural disasters and climate changes. Our fiscal policy framework is practically applicable for many developing countries facing increasing frequency and impact of natural disasters and climate change. Our rules-based fiscal framework is crucial for sustainable and countercyclical macroeconomic policies to build resilience against devastating natural hazards.

Analysis of tax-spend nexus for Russian regional budgets

2020 ◽  
pp. 5-29
Author(s):  
Evsey T. Gurvich ◽  
Natalia A. Krasnopeeva
Keyword(s):  
Economic Growth ◽  
Fiscal Policy ◽  
Causal Relationship ◽  
National Economy ◽  
Federal Budget ◽  
Fiscal Rules ◽  
Fiscal Discipline ◽  
Federal Level ◽  
Regional Budgets ◽  
Econometric Technique

We study the tax-spend nexus for Russian regional budgets. Causal relationship running from taxing to spending is found, thus supporting the concept “tax and spend” suggested by M. Friedman. Next, elasticity of expenditure by revenue is estimated for a panel of 80 regional budgets basing on data for 2000—2017. Estimates are in the range of 0.72 to 0.78 (depending on the econometric technique), which exceeds elasticity for the federal budget more than twice. This evidences that fiscal policy at the sub-federal (as distinct from the federal) level has clear pro-cyclical nature. Besides, the largest sensitivity of expenditure to revenue shocks is found for the item “national economy”, implying marked adverse implications for economic growth. We suggest to mitigate this effect by modifying fiscal rules for sub-federal budgets. They are currently aimed primarily at enhancing fiscal discipline, with less emphasis on countercyclical policy, insulating economy from fiscal shocks.

DAMPAK KEBIJAKAN FISKAL TERHADAP KINERJA SEKTOR PERTANIAN DI SULAWESI TENGGARA

2017 ◽  
Vol 1 (1) ◽  
Author(s):  
La Ode Jabuddin ◽  
Ayub M Padangaran ◽  
Azhar Bafadal Bafadal
Keyword(s):  
Fiscal Policy ◽  
Interest Rates ◽  
Agricultural Sector ◽  
Simultaneous Equations ◽  
Poor People ◽  
Land Area ◽  
Factors Affecting ◽  
Historical Simulation ◽  
The Impact ◽  
Direct Expenditure

This study aims to: (1) Knowing the dynamics of fiscal policy and the performance of the agricultural sector, (2) Analyze the factors that influence fiscal policy and the performance                   of the agricultural sector, and (3) Analyzing the impact of fiscal policy on the performance of the agricultural sector. The data used in this study were pooled 2005-2013 data in the aggregate. Econometric model the impact of fiscal policy on the performance of the agricultural sector is built in the form of simultaneous equations, consisting of 7 equations with 25 total variables in the model, 7 endogenous variables, 12 exogenous variables, and 6 variables lag. The model is estimated by 2SLS method SYSLIN procedures and historical simulation with SIMNLIN procedure.The results showed that: (1) The development of fiscal policy in Southeast Sulawesi from year to year tends to increase, (2) The performance of the agricultural sector from the aspect of GDP has decreased, from the aspect of labor is still consistent, in terms of investment to grow positively, and assign roles which means to decrease the number of poor people, (3) factors affecting fiscal policy is local revenues, equalization funds, other revenues, as well as the lag fiscal policy, (4) the factors that affect the performance of the agricultural sector from the aspect GDP is labor, direct expenditure and GDP lag; from the aspect of labor is the total labor force, investment, land area, direct expenditure, as well as the lag of labor; from the aspect of investment is influenced by GDP per capita, land area, interest rates and investment lag; as well as from the aspect of poor people, are affected by population, investments, direct expenditure and poverty lag, (5). Fiscal policy impact on the agricultural sector GDP increase, a decrease in the number of poor, declining agricultural laborers, and a decrease in the amount of investment in the agricultural sector.Keywords: Fiscal policy, the performance of the agricultural sector, the simultaneous equations

What Determines Fiscal Deficits in Europe? The Impact and Interaction of EMU Membership, Fiscal Rules, Fiscal Councils and Creative Accounting

2020 ◽  
Vol 71 (1) ◽  
pp. 15-41
Author(s):  
Dominik Maltritz ◽  
Sebastian Wüste
Keyword(s):  
Fiscal Rules ◽  
Special Focus ◽  
Annual Data ◽  
Budget Balance ◽  
Fiscal Deficits ◽  
Eu Countries ◽  
Creative Accounting ◽  
Stock Flow ◽  
The Impact

AbstractWe search for drivers of fiscal deficits in Europe using a data panel containing annual data of 27 EU countries in the years 1991–2012. Our special focus is on the influence of fiscal rules as well as on fiscal councils, i. e. institutions that may help to reduce deficits and enforce fiscal rules by advising governments. We distinguish between internal fiscal rules and external rules that result from EMU membership. In addition, we consider the impact of “creative accounting”, i. e. measures that help to circumvent fiscal rules, which we approximate by so called stock-flow-adjustments. We especially analyze the interactive influence of the mentioned variables on the budget balance.

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