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Die Schuldenbremse – ein Garant für nachhaltige Haushaltspolitik? Eine Replik auf Feld et al. (2024)

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Listed:
  • Mühlenweg Leo
  • Kaczmarczyk Patrick
  • Hornung Lukas
  • Kleimeier Nils

Abstract

In the debate on the German debt brake, there is an emerging consensus in favour of reform. Most recently, Feld et al. (2024) attempted to refute the frequently voiced criticism that the debt brake hinders government investment. The synthetic control method used compares Germany’s actual investment activity with a synthetic “Germany without a debt brake”. This article attempts to address the methodological problems of the study by using the augmented synthetic control method, but irrespective of this extension, fundamentally questions the results in Feld et al. (2024).

Suggested Citation

  • Mühlenweg Leo & Kaczmarczyk Patrick & Hornung Lukas & Kleimeier Nils, 2024. "Die Schuldenbremse – ein Garant für nachhaltige Haushaltspolitik? Eine Replik auf Feld et al. (2024)," Wirtschaftsdienst, Sciendo, vol. 104(7), pages 470-475.
    • Handle: RePEc:vrs:wirtsc:v:104:y:2024:i:7:p:470-475:n:1011
    DOI: 10.2478/wd-2024-0122
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    References listed on IDEAS

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    1. Paul De Grauwe & Yuemei Ji, 2012. "Mispricing of Sovereign Risk and Macroeconomic Stability in the Eurozone," Journal of Common Market Studies, Wiley Blackwell, vol. 50(6), pages 866-880, November.
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    More about this item

    JEL classification:

    • E62 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - Fiscal Policy; Modern Monetary Theory
    • H54 - Public Economics - - National Government Expenditures and Related Policies - - - Infrastructures
    • H60 - Public Economics - - National Budget, Deficit, and Debt - - - General

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