The political economy of budget deficits
Published
Journal Article
In Leachman et al. (2005) we use the multicointegration approach to test for sustainable fiscal budgeting processes in a stochastic setting in 15 industrialized countries. In this paper, we extend the analysis in order to rank these same countries as well as an additional three, according to the degree to which their budget processes are sustainable. Rankings are related to theories regarding the political economy of budget deficits. Evidence clearly indicates that fiscal performance is better where fiscal budgeting institutions are strong. Additionally, we find that in conjunction with fiscal strength, greater degrees of federalism positively affect intertemporal budget management. © 2007 Blackwell Publishing Ltd.
Full Text
Duke Authors
Cited Authors
- Leachman, LL; Rosas, G; Lange, P; Bester, A
Published Date
- November 1, 2007
Published In
Volume / Issue
- 19 / 3
Start / End Page
- 369 - 420
Electronic International Standard Serial Number (EISSN)
- 1468-0343
International Standard Serial Number (ISSN)
- 0954-1985
Digital Object Identifier (DOI)
- 10.1111/j.1468-0343.2007.00320.x
Citation Source
- Scopus