Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/77414
Authors: 
Krogstrup, Signe
Wälti, Sébastien
Year of Publication: 
2007
Series/Report no.: 
HEI Working Paper 15/2007
Abstract: 
This paper focuses on the observed empirical relationship between fiscal rules and budget deficits, and examines whether this correlation is driven by an omitted variable, namely voter preferences. We make use of two different estimation methods to capture voter preferences in a panel of Swiss sub-federal jurisdictions. First, we include a recently constructed measure of fiscal preferences. Second, we capture preferences through fixed effects with a structural break as women are enfranchised. We find that fiscal rules continue to have a significant impact on real budget balances.
Subjects: 
fiscal policy
fiscal rules
fiscal institutions
budget deficits
fiscal preferences
endogeneity
JEL: 
C2
D7
E6
H6
Document Type: 
Working Paper

Files in This Item:
File
Size
184.26 kB





Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.