Measuring the fiscal governance instruments:

Vol. 41 No. 1 (2021)

Jan-Mar / 2021
Published February 9, 2021
PDF-English
PDF-English

How to Cite

Franek, Slawomir, and Marta Postula. 2021. “Measuring the Fiscal Governance instruments:: A Synthetic Index for EU Countries”. Brazilian Journal of Political Economy 41 (1), 117-36. https://doi.org/10.1590/0101-31572021-3107.

Measuring the fiscal governance instruments:

a synthetic index for EU countries

Slawomir Franek
Professor of the Szczecin University, Institute of Economics and Finance, Poland.
Marta Postula
Professor Varsaw University, Departament of Finance and Accountability, Faculty of Administration, Poland.
Brazilian Journal of Political Economy, Vol. 41 No. 1 (2021), Jan-Mar / 2021, Pages 117-136

Abstract

The aim of the paper is to examine the collective effect of fiscal governance instruments (i.e., fiscal rules, medium-term budgetary frameworks, independent fiscal institutions) on the fiscal outcomes of EU member states. The results of panel data model estimation for 28 EU countries for the period 2004-2016 confirm a statistically significant and positive impact of synthentic index for those instruments on the general government balance to GDP ratio. Additionally, an adjustment of the synthetic index was proposed, taking into account the degree of autonomy of independent fiscal institutions, and the link between medium-term budgetary frameworks and the annual budget.

JEL Classification: H61; H50; E62.


Keywords: Fiscal governance, fiscal rules, medium-term budgetary frameworks, independent fiscal institutions