The Impact of Fiscal Rules on Public Debt and Public Deficits Based on the Budget Institutions Approach
The budget institutions approach states that the differences between the public finance indicators of the countries are affected not only by economic conditions but also by institutional and political factors. Accordingly in order to prevent excessive public debt and public deficits, fiscal governan...
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| Format: | Article |
| Language: | English |
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International Public Finance Conference/Turkey
2024-06-01
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| Series: | International Journal of Public Finance |
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| Online Access: | https://doaj.org/publisher/uploadfile |
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| author | İlter Ünlükaplan Ebru Yalçın |
| author_facet | İlter Ünlükaplan Ebru Yalçın |
| author_sort | İlter Ünlükaplan |
| collection | DOAJ |
| description | The budget institutions approach states that the differences between the public finance indicators of the countries are affected not only by economic conditions but also by institutional and political factors. Accordingly in order to prevent excessive public debt and public deficits, fiscal governance criteria must be established during the budget process.In this paper, the impact of fiscal rules applied in 21 EU countries on public debts and public deficits was tested using the 1995-2016 period data by Westerlund and Edgerton (2007) panel cointegration method. Considering the Fiscal Rule Index (Eurostat 2019) for the design of fiscal rules, we show that well-designed rules reduce public deficits but have no statistically significant effect on public debt. |
| format | Article |
| id | doaj-art-2ee6edc0d4fb43f1821d26c408482090 |
| institution | Kabale University |
| issn | 2548-0499 |
| language | English |
| publishDate | 2024-06-01 |
| publisher | International Public Finance Conference/Turkey |
| record_format | Article |
| series | International Journal of Public Finance |
| spelling | doaj-art-2ee6edc0d4fb43f1821d26c4084820902025-02-03T18:19:38ZengInternational Public Finance Conference/TurkeyInternational Journal of Public Finance2548-04992024-06-0191578210.30927/ijpf.12859531042The Impact of Fiscal Rules on Public Debt and Public Deficits Based on the Budget Institutions Approachİlter Ünlükaplan0https://orcid.org/0000-0002-5420-3642Ebru Yalçın1https://orcid.org/0000-0001-9904-8001ÇUKUROVA ÜNİVERSİTESİKÜTAHYA DUMLUPINAR ÜNİVERSİTESİ, İKTİSADİ VE İDARİ BİLİMLER FAKÜLTESİ, MALİYE BÖLÜMÜ, MALİYE PR.The budget institutions approach states that the differences between the public finance indicators of the countries are affected not only by economic conditions but also by institutional and political factors. Accordingly in order to prevent excessive public debt and public deficits, fiscal governance criteria must be established during the budget process.In this paper, the impact of fiscal rules applied in 21 EU countries on public debts and public deficits was tested using the 1995-2016 period data by Westerlund and Edgerton (2007) panel cointegration method. Considering the Fiscal Rule Index (Eurostat 2019) for the design of fiscal rules, we show that well-designed rules reduce public deficits but have no statistically significant effect on public debt.https://doaj.org/publisher/uploadfilebudget institutionsfiscal governancefiscal disciplinefiscal rulecommon pool problembudget institutionsfiscal governancefiscal disciplinefiscal rulecommon pool problem |
| spellingShingle | İlter Ünlükaplan Ebru Yalçın The Impact of Fiscal Rules on Public Debt and Public Deficits Based on the Budget Institutions Approach International Journal of Public Finance budget institutions fiscal governance fiscal discipline fiscal rule common pool problem budget institutions fiscal governance fiscal discipline fiscal rule common pool problem |
| title | The Impact of Fiscal Rules on Public Debt and Public Deficits Based on the Budget Institutions Approach |
| title_full | The Impact of Fiscal Rules on Public Debt and Public Deficits Based on the Budget Institutions Approach |
| title_fullStr | The Impact of Fiscal Rules on Public Debt and Public Deficits Based on the Budget Institutions Approach |
| title_full_unstemmed | The Impact of Fiscal Rules on Public Debt and Public Deficits Based on the Budget Institutions Approach |
| title_short | The Impact of Fiscal Rules on Public Debt and Public Deficits Based on the Budget Institutions Approach |
| title_sort | impact of fiscal rules on public debt and public deficits based on the budget institutions approach |
| topic | budget institutions fiscal governance fiscal discipline fiscal rule common pool problem budget institutions fiscal governance fiscal discipline fiscal rule common pool problem |
| url | https://doaj.org/publisher/uploadfile |
| work_keys_str_mv | AT ilterunlukaplan theimpactoffiscalrulesonpublicdebtandpublicdeficitsbasedonthebudgetinstitutionsapproach AT ebruyalcın theimpactoffiscalrulesonpublicdebtandpublicdeficitsbasedonthebudgetinstitutionsapproach AT ilterunlukaplan impactoffiscalrulesonpublicdebtandpublicdeficitsbasedonthebudgetinstitutionsapproach AT ebruyalcın impactoffiscalrulesonpublicdebtandpublicdeficitsbasedonthebudgetinstitutionsapproach |