Fiscal rules and fiscal counter-cyclicality

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5 Citations (Scopus)


We assess the effect of fiscal rules on a new time-varying measure of fiscal counter-cyclicality computed for 60 countries over the period 1980–2014. First, we find that fiscal counter-cyclicality is positive and has been increasing over time, being larger in advanced economies. Second, we find that fiscal rules reduce the degree of fiscal counter-cyclicality. The result is especially strong for debt-based rules in advanced economies. Some design features hinder the degree of fiscal counter-cyclicality (such as escape clauses or enforcement procedures), while others (such as transparency) foster it.

Original languageEnglish
Pages (from-to)159-162
Number of pages4
JournalEconomics Letters
Publication statusPublished - 1 Sep 2018


  • Filtering
  • Fiscal rules
  • Fiscal stabilization
  • Government size
  • Time-varying coefficients
  • Weighted least squares


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