Fiscal discipline and exchange rates : does politics matter?
Autor(a) principal: | |
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Data de Publicação: | 2019 |
Outros Autores: | , |
Tipo de documento: | Artigo |
Idioma: | eng |
Título da fonte: | Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos) |
Texto Completo: | http://hdl.handle.net/10400.5/18768 |
Resumo: | We look at the effect of exchange rate regimes on fiscal discipline, taking into account the effect of underlying political conditions. We present a model where strong politics (defined as policymakers facing longer political horizon and higher cohesion) are associated with better fiscal performance, but fixed exchange rates may revert this result and lead to less fiscal discipline. We confirm these hypotheses through regression analysis performed on a panel sample covering 79 countries from 1975 to 2012. Our empirical results also show that the positive effect of strong politics on fiscal discipline is not enough to counter the negative impact of being at/moving to fixed exchange rates. Our results are robust to a number of important sensitivity checks, including different estimators, alternative proxies for fiscal discipline, and sub-sample analysis. |
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Fiscal discipline and exchange rates : does politics matter?Fiscal disciplineDeficitPolitical EconomyExchange RatesWe look at the effect of exchange rate regimes on fiscal discipline, taking into account the effect of underlying political conditions. We present a model where strong politics (defined as policymakers facing longer political horizon and higher cohesion) are associated with better fiscal performance, but fixed exchange rates may revert this result and lead to less fiscal discipline. We confirm these hypotheses through regression analysis performed on a panel sample covering 79 countries from 1975 to 2012. Our empirical results also show that the positive effect of strong politics on fiscal discipline is not enough to counter the negative impact of being at/moving to fixed exchange rates. Our results are robust to a number of important sensitivity checks, including different estimators, alternative proxies for fiscal discipline, and sub-sample analysis.ISEG - REM - Research in Economics and MathematicsRepositório da Universidade de LisboaJalles, João TovarMulas-Granados, CarlosTavares, José2019-11-19T11:05:34Z2019-112019-11-01T00:00:00Zinfo:eu-repo/semantics/publishedVersioninfo:eu-repo/semantics/articleapplication/pdfhttp://hdl.handle.net/10400.5/18768engJalles, João Tovar, Carlos Mulas-Granados e José Tavares (2019). "Fiscal discipline and exchange rates : does politics matter?". Instituto Superior de Economia e Gestão – REM Working paper nº 0103 - 20192184-108Xinfo:eu-repo/semantics/openAccessreponame:Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos)instname:Agência para a Sociedade do Conhecimento (UMIC) - FCT - Sociedade da Informaçãoinstacron:RCAAP2023-03-06T14:48:19Zoai:www.repository.utl.pt:10400.5/18768Portal AgregadorONGhttps://www.rcaap.pt/oai/openaireopendoar:71602024-03-19T17:03:46.203593Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos) - Agência para a Sociedade do Conhecimento (UMIC) - FCT - Sociedade da Informaçãofalse |
dc.title.none.fl_str_mv |
Fiscal discipline and exchange rates : does politics matter? |
title |
Fiscal discipline and exchange rates : does politics matter? |
spellingShingle |
Fiscal discipline and exchange rates : does politics matter? Jalles, João Tovar Fiscal discipline Deficit Political Economy Exchange Rates |
title_short |
Fiscal discipline and exchange rates : does politics matter? |
title_full |
Fiscal discipline and exchange rates : does politics matter? |
title_fullStr |
Fiscal discipline and exchange rates : does politics matter? |
title_full_unstemmed |
Fiscal discipline and exchange rates : does politics matter? |
title_sort |
Fiscal discipline and exchange rates : does politics matter? |
author |
Jalles, João Tovar |
author_facet |
Jalles, João Tovar Mulas-Granados, Carlos Tavares, José |
author_role |
author |
author2 |
Mulas-Granados, Carlos Tavares, José |
author2_role |
author author |
dc.contributor.none.fl_str_mv |
Repositório da Universidade de Lisboa |
dc.contributor.author.fl_str_mv |
Jalles, João Tovar Mulas-Granados, Carlos Tavares, José |
dc.subject.por.fl_str_mv |
Fiscal discipline Deficit Political Economy Exchange Rates |
topic |
Fiscal discipline Deficit Political Economy Exchange Rates |
description |
We look at the effect of exchange rate regimes on fiscal discipline, taking into account the effect of underlying political conditions. We present a model where strong politics (defined as policymakers facing longer political horizon and higher cohesion) are associated with better fiscal performance, but fixed exchange rates may revert this result and lead to less fiscal discipline. We confirm these hypotheses through regression analysis performed on a panel sample covering 79 countries from 1975 to 2012. Our empirical results also show that the positive effect of strong politics on fiscal discipline is not enough to counter the negative impact of being at/moving to fixed exchange rates. Our results are robust to a number of important sensitivity checks, including different estimators, alternative proxies for fiscal discipline, and sub-sample analysis. |
publishDate |
2019 |
dc.date.none.fl_str_mv |
2019-11-19T11:05:34Z 2019-11 2019-11-01T00:00:00Z |
dc.type.status.fl_str_mv |
info:eu-repo/semantics/publishedVersion |
dc.type.driver.fl_str_mv |
info:eu-repo/semantics/article |
format |
article |
status_str |
publishedVersion |
dc.identifier.uri.fl_str_mv |
http://hdl.handle.net/10400.5/18768 |
url |
http://hdl.handle.net/10400.5/18768 |
dc.language.iso.fl_str_mv |
eng |
language |
eng |
dc.relation.none.fl_str_mv |
Jalles, João Tovar, Carlos Mulas-Granados e José Tavares (2019). "Fiscal discipline and exchange rates : does politics matter?". Instituto Superior de Economia e Gestão – REM Working paper nº 0103 - 2019 2184-108X |
dc.rights.driver.fl_str_mv |
info:eu-repo/semantics/openAccess |
eu_rights_str_mv |
openAccess |
dc.format.none.fl_str_mv |
application/pdf |
dc.publisher.none.fl_str_mv |
ISEG - REM - Research in Economics and Mathematics |
publisher.none.fl_str_mv |
ISEG - REM - Research in Economics and Mathematics |
dc.source.none.fl_str_mv |
reponame:Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos) instname:Agência para a Sociedade do Conhecimento (UMIC) - FCT - Sociedade da Informação instacron:RCAAP |
instname_str |
Agência para a Sociedade do Conhecimento (UMIC) - FCT - Sociedade da Informação |
instacron_str |
RCAAP |
institution |
RCAAP |
reponame_str |
Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos) |
collection |
Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos) |
repository.name.fl_str_mv |
Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos) - Agência para a Sociedade do Conhecimento (UMIC) - FCT - Sociedade da Informação |
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1799131129283870720 |