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Do budget balance rules anchor budget balance expectations? -- Some international evidence

Author

Listed:
  • Rülke, Jan-Christoph
  • Frenkel, Michael
  • Lis, Eliza

Abstract

This is the first study that analyzes whether budget balance expectations are anchored and whether budget balance rules effectively anchor expectations. To this end, we use a unique data set which covers budget balance expectations in 17 countries that implemented a budget balance rules. While our results are mixed concerning the general impact of budget balance rules on anchoring expectations, we do find that specific features of budget balance rules are important to successfully anchor budget balance expectations.

Suggested Citation

  • Rülke, Jan-Christoph & Frenkel, Michael & Lis, Eliza, 2013. "Do budget balance rules anchor budget balance expectations? -- Some international evidence," VfS Annual Conference 2013 (Duesseldorf): Competition Policy and Regulation in a Global Economic Order 80050, Verein für Socialpolitik / German Economic Association.
    • Handle: RePEc:zbw:vfsc13:80050
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    More about this item

    JEL classification:

    • H62 - Public Economics - - National Budget, Deficit, and Debt - - - Deficit; Surplus
    • H68 - Public Economics - - National Budget, Deficit, and Debt - - - Forecasts of Budgets, Deficits, and Debt
    • H11 - Public Economics - - Structure and Scope of Government - - - Structure and Scope of Government

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