TY  - BOOK
AU  - Kotia,Ananya
TI  - Do Subnational Fiscal Rules Foster Fiscal Discipline? New Empirical Evidence from Europe
T2  - IMF Working Papers
SN  - 1484322037 :
SN  - 1018-5941
PY  - 2016///
CY  - Washington, D.C.
PB  - International Monetary Fund
KW  - Fiscal Balance
KW  - imf
KW  - Fiscal Policy
KW  - Fiscal Rules
KW  - Intergovernmental Fiscal Relations
KW  - Europe
N2  - This paper studies how fiscal rules interact with the intergovernmental fiscal framework to foster fiscal discipline among European subnational governments. We use political variables describing the fiscal attitudes of the central government as instruments to obtain consistent estimates of the impact of subnational fiscal rules on fiscal balances. The results suggest that the discipline-enhancing effect of fiscal rules is weaker when there are large "vertical fiscal imbalances" that is, large differences in revenue and spending assignments across the different levels of government. These findings imply that separate reforms to reduce excessive vertical fiscal imbalances complement a rules-based fiscal framework that is aimed at fostering fiscal discipline
UR  - http://elibrary.imf.org/view/IMF001/23337-9781484322031/23337-9781484322031/23337-9781484322031.xml
UR  - http://www.imfbookstore.org/IMFORG/9781484322031
ER  -