Economic stabilization in the post-crisis world: Are fiscal rules the answer?

Publikation: Bidrag til tidsskrift › Tidsskriftartikel › Forskning › fagfællebedømt

Standard

Economic stabilization in the post-crisis world : Are fiscal rules the answer? / Bergman, Ulf Michael; Hutchison, Michael M.

I: Journal of International Money and Finance, Bind 52, 2015, s. 82-101.

Publikation: Bidrag til tidsskrift › Tidsskriftartikel › Forskning › fagfællebedømt

Harvard

Bergman, UM & Hutchison, MM 2015, 'Economic stabilization in the post-crisis world: Are fiscal rules the answer?', Journal of International Money and Finance, bind 52, s. 82-101. https://doi.org/10.1016/j.jimonfin.2014.11.014

APA

Bergman, U. M., & Hutchison, M. M. (2015). Economic stabilization in the post-crisis world: Are fiscal rules the answer? Journal of International Money and Finance, 52, 82-101. https://doi.org/10.1016/j.jimonfin.2014.11.014

Vancouver

Bergman UM, Hutchison MM. Economic stabilization in the post-crisis world: Are fiscal rules the answer? Journal of International Money and Finance. 2015;52:82-101. https://doi.org/10.1016/j.jimonfin.2014.11.014

Author

Bergman, Ulf Michael ; Hutchison, Michael M. / Economic stabilization in the post-crisis world : Are fiscal rules the answer?. I: Journal of International Money and Finance. 2015 ; Bind 52. s. 82-101.

Bibtex

@article{c0c61e74125c4ed6b7e10de3fe70fbc2,
title = "Economic stabilization in the post-crisis world: Are fiscal rules the answer?",
abstract = "We investigate whether fiscal rules help to reduce the extent of policy procyclicalitydhow government expenditure policy responds to GDP – in a dynamic panel framework with 81 advanced, emerging and developing countries over 1985-2012. We construct two new fiscal rule indices and investigate whether rules help to dampen procyclical policies. We condition our empirical specifications on the degree to which governments appear able to manage and enforce fiscal rules. We find that fiscal rules are very effective in reducing procyclicality of policy once a minimum threshold of government efficiency/quality has been reached. Government efficiency alone is not enough to reduce procyclicality of fiscal policy. However, high government efficiency combined with strong fiscal rules is a potent combination facilitating counter-cyclical policy responses to GDP movements.",
author = "Bergman, {Ulf Michael} and Hutchison, {Michael M.}",
note = "JEL Classification: E32, E62, H5",
year = "2015",
doi = "10.1016/j.jimonfin.2014.11.014",
language = "English",
volume = "52",
pages = "82--101",
journal = "Journal of International Money and Finance",
issn = "0261-5606",
publisher = "Pergamon Press",

}

RIS

TY - JOUR

T1 - Economic stabilization in the post-crisis world

T2 - Are fiscal rules the answer?

AU - Bergman, Ulf Michael

AU - Hutchison, Michael M.

N1 - JEL Classification: E32, E62, H5

PY - 2015

Y1 - 2015

N2 - We investigate whether fiscal rules help to reduce the extent of policy procyclicalitydhow government expenditure policy responds to GDP – in a dynamic panel framework with 81 advanced, emerging and developing countries over 1985-2012. We construct two new fiscal rule indices and investigate whether rules help to dampen procyclical policies. We condition our empirical specifications on the degree to which governments appear able to manage and enforce fiscal rules. We find that fiscal rules are very effective in reducing procyclicality of policy once a minimum threshold of government efficiency/quality has been reached. Government efficiency alone is not enough to reduce procyclicality of fiscal policy. However, high government efficiency combined with strong fiscal rules is a potent combination facilitating counter-cyclical policy responses to GDP movements.

AB - We investigate whether fiscal rules help to reduce the extent of policy procyclicalitydhow government expenditure policy responds to GDP – in a dynamic panel framework with 81 advanced, emerging and developing countries over 1985-2012. We construct two new fiscal rule indices and investigate whether rules help to dampen procyclical policies. We condition our empirical specifications on the degree to which governments appear able to manage and enforce fiscal rules. We find that fiscal rules are very effective in reducing procyclicality of policy once a minimum threshold of government efficiency/quality has been reached. Government efficiency alone is not enough to reduce procyclicality of fiscal policy. However, high government efficiency combined with strong fiscal rules is a potent combination facilitating counter-cyclical policy responses to GDP movements.

U2 - 10.1016/j.jimonfin.2014.11.014

DO - 10.1016/j.jimonfin.2014.11.014

M3 - Journal article

VL - 52

SP - 82

EP - 101

JO - Journal of International Money and Finance

JF - Journal of International Money and Finance

SN - 0261-5606

ER -

ID: 129921033