Fiscal Rules Effectiveness and Outcomes for Sub-Central Governments

Abstract

This project explores the effectiveness of sub-central government fiscal rules in producing their intended outcomes. The authors develop a set of regression-based models to test whether more stringent fiscal rules result in lower levels and growth rates of spending, taxation, and debt at the sub-central government level. The report includes information on the rationale for sub-central fiscal rules, data and modeling, and implications for further research.