Fiscal Rules and Government Efficiency: An Empirical Analysis from 1996 to 2020
DOI:
https://doi.org/10.55532/1806-8944.2024.231Keywords:
Tax Rules, Fiscal Policy, Method of Generalized MomentsAbstract
The work investigates the effects of the main categories of fiscal rules (debt, revenue, expenses and results) on the economic aggregates that each one seeks to control. Using a dataset covering 180 countries from 1996 to 2020, the interaction between fiscal rules and government efficiency was experimented. To measure the impact of these rules, we use the generalized method of moments (GMM). The results indicate that the effect of the rule, through the debt rule, is associated with expenditure control and a greater fiscal result. Furthermore, although the rules prove to be substitutes for government efficiency in debt control and greater fiscal results, they also prove to be complementary in the case of expenditure.
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