Fiscal rules with discretion for an economic union

G Sublet - Cahier de recherche, 2022 - papyrus.bib.umontreal.ca
The design of a fiscal rule involves a trade-off between committing governments to a fiscally
responsible budget and giving governments the discretion to respond to shocks. What is the …

[HTML][HTML] Consistent flexibility: Enforcement of deficit rules through political incentives

V Dotti, E Janeba - European Journal of Political Economy, 2023 - Elsevier
We study the optimal design of a deficit rule in a model in which the government is present-
biased, shocks to tax revenues make rule compliance stochastic, and a rule violation …

[PDF][PDF] The Optimal Degree of Discretion in Fiscal Policy

G Sublet - 2023 - guillaumesublet.github.io
The design of a fiscal rule involves a trade-off between committing governments to a fiscally
responsible budget and giving governments the discretion to respond to shocks. What is the …