Fiscal Institutions and Fiscal Performance

An overview of the political and economic issues involved in the formation of budget deficits. The text brings together theoretical models, empirical evidence and case studies to analyze the effect of political institutions, fiscal regulations, and policy decisions on accumulating deficits.
The unprecedented rise and persistence of large-scale budget deficits in many developed and developing nations during the past three decades has caused great concern. The widespread presence of such deficits has proved difficult to explain. Their emergence in otherwise diverse nations defies particularistic explanations aimed at internal economic developments within a specific country. This work shifts emphasis away from narrow economic factors to more broadly defined political and institutional factors that affect government policy and national debt. The collection brings together theoretical models, empirical evidence and a series of case studies to analyze the effect of political institutions, fiscal regulations, and policy decisions on accumulating deficits. It provides an overview of the political and economic issues involved and highlights the role of budgetary institutions in the formation of budget deficits.

Contributor: James M. Poterba (Edited by), Jurgen von Hagen (Edited by)

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