To what extent do fiscal spending rules affect budget composition?

Journal of Public Sector Economics

article

Gregori, Wildmer Daniel Gregori¹ 

[1] European Commission, Joint Research Centre (JRC), Ispra, Italy

关键词: fiscal rules;    public spending;    difference-in-discontinuities;    local governments;   

DOI  :  10.3326/pse.42.3.5

来源: Institute of Public Finance

【 摘 要 】

The aim of this paper is to investigate the extent to which local budget composition reacts to variations in fiscal spending rules. It looks at Italian subnational governments and specific changes in the institutional framework, implementing a difference-in-discontinuities strategy. Results show that when a reduction in current spending is imposed, local authorities direct the cuts towards services. Furthermore, when an increase in capital spending is allowed, there is an increase in spending on infrastructure and local public debt.

【 授权许可】

Unknown