Abstract

http://ssrn.com/abstract=1762250
 


 



The Impact of Fiscal Rules on Fiscal Policy Volatility


Michal Brzozowski


affiliation not provided to SSRN

Joanna Siwinska-Gorzelak


University of Warsaw, Faculty of Economics

November 1, 2010

Journal of Applied Economics, Vol. 13, No. 2, pp. 205-2312, November 2010

Abstract:     
In this paper, we study the impact of fiscal rules, in the form of explicit deficit or debt constraints, on fiscal policy volatility. The main motivation behind this research is, on the one hand, a negative and robust correlation of fiscal policy volatility and long run growth documented in several papers and, on the other, the relatively small number of works that discuss possible determinants of the former. We argue that fiscal rules have a significant impact on fiscal policy volatility, but depending on the target of the rule - public debt or fiscal balance - rules will increase or decrease policy volatility. This result is novel, and, to the best of our knowledge, has not been discussed in the literature.

Keywords: fiscal rules, fiscal policy volatility

JEL Classification: H60, E62

Accepted Paper Series


Not Available For Download

Date posted: February 16, 2011  

Suggested Citation

Brzozowski, Michal and Siwinska-Gorzelak, Joanna, The Impact of Fiscal Rules on Fiscal Policy Volatility (November 1, 2010). Journal of Applied Economics, Vol. 13, No. 2, pp. 205-2312, November 2010. Available at SSRN: http://ssrn.com/abstract=1762250

Contact Information

Michal Brzozowski (Contact Author)
affiliation not provided to SSRN
Joanna Siwinska-Gorzelak
University of Warsaw, Faculty of Economics ( email )
Hoza 69
Warszawa, Pl-00681
Poland
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