Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/145079
Authors: 
Pfeil, Christian F.
Feld, Lars P.
Year of Publication: 
2016
Series/Report no.: 
CESifo Working Paper 6044
Abstract: 
The Swiss debt brake is widely appreciated as one of the most rationally designed fiscal rules in the world and was thus also discussed as blueprint in the debates about fiscal rules in Germany, the European Union member states and Israel. However, evidence that this rule really contributes to sound federal finances does not exist yet. We investigate the effectiveness of the Swiss debt brake by employing the Synthetic Control Method. We find that the introduction of this fiscal rule improved the budget balance by about 3.6 percentage points on average in a post-intervention period covering five years.
Subjects: 
Swiss debt brake
cyclically adjusted budget balance
government debt
synthetic control method
JEL: 
H11
H60
Document Type: 
Working Paper

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