Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/19505 
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dc.contributor.authorvon Hagen, Jürgenen
dc.contributor.authorWolff, Guntram B.en
dc.date.accessioned2009-01-28T15:59:02Z-
dc.date.available2009-01-28T15:59:02Z-
dc.date.issued2004-
dc.identifier.urihttp://hdl.handle.net/10419/19505-
dc.description.abstractFiscal rules, such as the excessive deficit procedure and the stability and growth pact (SGP), aim at constraining government behavior. Milesi-Ferretti (2003) develops a model in which governments circumvent such rules by reverting to creative accounting. The amount of this creative accounting depends on the reputation cost for the government and the economic cost of sticking to the rule. In this paper, we provide empirical evidence of creative accounting in the European Union. We find that the SGP rules have induced governments to use stock-flow adjustments, a form of creative accounting, to hide deficits. This tendency to substitute stock-flow adjustments for budget deficits is especially strong for the cyclical component of the deficit, as in times of recession the cost of reducing the deficit is particularly large.en
dc.language.isoengen
dc.publisher|aDeutsche Bundesbank |cFrankfurt a. M.en
dc.relation.ispartofseries|aDiscussion Paper Series 1 |x2004,38en
dc.subject.jelH62en
dc.subject.jelH70en
dc.subject.jelH61en
dc.subject.jelE62en
dc.subject.jelH63en
dc.subject.ddc330en
dc.subject.keywordFiscal rulesen
dc.subject.keywordstock-flow adjustmentsen
dc.subject.keyworddebt-deficit adjustmentsen
dc.subject.keywordstability and growth pacten
dc.subject.keywordexcessive deficit procedureen
dc.subject.keywordESA 95en
dc.subject.stwEU-Stabilitätspakten
dc.subject.stwFinanzpolitiken
dc.subject.stwKonvergenzkriterienen
dc.subject.stwÖffentliche Finanzkontrolleen
dc.subject.stwÖffentliches Rechnungswesenen
dc.subject.stwÖffentliche Schuldenen
dc.subject.stwEU-Staatenen
dc.titleWhat do deficits tell us about debt? Empirical evidence on creative accounting with fiscal rules in the EU-
dc.typeWorking Paperen
dc.identifier.ppn477279244en
dc.rightshttp://www.econstor.eu/dspace/Nutzungsbedingungenen
dc.identifier.repecRePEc:zbw:bubdp1:2916en

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