05737oam 22014294 450 991016292580332120230124194004.01-4755-6998-X1-4755-7015-5(CKB)3710000001045046(MiAaPQ)EBC4800300(IMF)WPIEA2017006(EXLCZ)99371000000104504620020129d2017 uf 0engurcnu||||||||rdacontentrdamediardacarrierFiscal Rules to Tame the Political Budget Cycle : Evidence from Italian Municipalities /Lorenzo Forni, Andrea BonfattiWashington, D.C. :International Monetary Fund,2017.1 online resource (21 pages) illustrations, tablesIMF Working Papers1-4755-6997-1 Includes bibliographical references.The paper provides evidence that fiscal rules can limit the political budget cycle. It focuses on the application of the Italian fiscal rule at the sub-national level over the period 2004-2006 and shows that: 1) municipalities are subject to political budget cycles in capital spending; 2) the Italian subnational fiscal rule introduced in 1999 has been enforced by the central government; 3) municipalities subject to the fiscal rule show more limited political budget cycles than municipalities not subject to the rule. In order to identify the effect, we rely on the fact that the domestic fiscal rule does not apply to municipalities below 5,000 inhabitants. We find that the political budget cycle increases real capital spending by about 35 percent on average in the years prior to municipal elections and that the sub-national fiscal rule reduces these figures by about two thirds.IMF Working Papers; Working Paper ;No. 2017/006Political scienceBudgetingimfMacroeconomicsimfPublic FinanceimfDemographyimfSingle Equation ModelsimfSingle Variables: Cross-Sectional ModelsimfSpatial ModelsimfTreatment Effect Modelsimf'Panel Data ModelsimfSpatio-temporal Models'imfNational Deficit SurplusimfState and Local Budget and ExpendituresimfIntergovernmental RelationsimfFederalismimfSecessionimfFiscal PolicyimfNational Government Expenditures and Related Policies: InfrastructuresimfOther Public Investment and Capital StockimfNational BudgetimfBudget SystemsimfDemographic Economics: GeneralimfEconomics of the ElderlyimfEconomics of the HandicappedimfNon-labor Market DiscriminationimfNational Government Expenditures and Related Policies: GeneralimfPublic finance & taxationimfBudgeting & financial managementimfPopulation & demographyimfFiscal rulesimfCapital spendingimfBudget planning and preparationimfPopulation and demographicsimfAgingimfFiscal policyimfExpenditureimfPublic financial management (PFM)imfCurrent spendingimfCapital investmentsimfBudgetimfPopulationimfPopulation agingimfExpenditures, PublicimfItalyimfPolitical science.BudgetingMacroeconomicsPublic FinanceDemographySingle Equation ModelsSingle Variables: Cross-Sectional ModelsSpatial ModelsTreatment Effect Models'Panel Data ModelsSpatio-temporal Models'National Deficit SurplusState and Local Budget and ExpendituresIntergovernmental RelationsFederalismSecessionFiscal PolicyNational Government Expenditures and Related Policies: InfrastructuresOther Public Investment and Capital StockNational BudgetBudget SystemsDemographic Economics: GeneralEconomics of the ElderlyEconomics of the HandicappedNon-labor Market DiscriminationNational Government Expenditures and Related Policies: GeneralPublic finance & taxationBudgeting & financial managementPopulation & demographyFiscal rulesCapital spendingBudget planning and preparationPopulation and demographicsAgingFiscal policyExpenditurePublic financial management (PFM)Current spendingCapital investmentsBudgetPopulationPopulation agingExpenditures, Public320Forni Lorenzo767791Bonfatti Andrea1452566DcWaIMFBOOK9910162925803321Fiscal Rules to Tame the Political Budget Cycle3654394UNINA