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The relative effectiveness of EU national and supranational fiscal rules

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  • Melisso Boschi
  • Alessandro Girardi
  • Marco Ventura

Abstract

Given the EU economic governance, where two layers of fiscal rules co-exist at the supranational and national levels, this paper offers an empirical assessment of the additional impact of national frameworks, compared to EU level ones, on EU countries' budgetary outcomes. Building on the staggered difference-in-differences approach, we quantify the negligible benefits for budgetary discipline stemming from national fiscal rules when supranational ones are already in place.

Suggested Citation

  • Melisso Boschi & Alessandro Girardi & Marco Ventura, 2022. "The relative effectiveness of EU national and supranational fiscal rules," Working Papers in Public Economics 222, Department of Economics and Law, Sapienza University of Roma.
    • Handle: RePEc:sap:wpaper:wp222
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    References listed on IDEAS

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    1. Heinemann, Friedrich & Moessinger, Marc-Daniel & Yeter, Mustafa, 2018. "Do fiscal rules constrain fiscal policy? A meta-regression-analysis," European Journal of Political Economy, Elsevier, vol. 51(C), pages 69-92.
    2. Asatryan, Zareh & Castellón, César & Stratmann, Thomas, 2018. "Balanced budget rules and fiscal outcomes: Evidence from historical constitutions," Journal of Public Economics, Elsevier, vol. 167(C), pages 105-119.
    3. Larch, Martin & Orseau, Eloïse & van der Wielen, Wouter, 2021. "Do EU fiscal rules support or hinder counter-cyclical fiscal policy?," Journal of International Money and Finance, Elsevier, vol. 112(C).
    4. Caselli, Francesca & Wingender, Philippe, 2021. "Heterogeneous effects of fiscal rules: The Maastricht fiscal criterion and the counterfactual distribution of government deficits✰," European Economic Review, Elsevier, vol. 136(C).
    5. Cavanaugh, Joseph E., 1997. "Unifying the derivations for the Akaike and corrected Akaike information criteria," Statistics & Probability Letters, Elsevier, vol. 33(2), pages 201-208, April.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Fiscal rules; European Union; Staggered Difference-in-Differences;
    All these keywords.

    JEL classification:

    • H61 - Public Economics - - National Budget, Deficit, and Debt - - - Budget; Budget Systems
    • C21 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Cross-Sectional Models; Spatial Models; Treatment Effect Models
    • C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models

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