مرکز منطقه ای اطلاع رساني علوم و فناوري - The Impacts of Fiscal Rules on Macroeconomic Variables

Abstract :

Theories associated with social interference-intervention on economic markets have differed in time. A rise of government expenditures and budget deficits in the 1990s have created some innovation needs in the field of public finance that makes definition of fiscal rule a current issue. This study empirically seek to reveal the impacts of fiscal rule practices on macroeconomic variables, including unemployment rate and economic growth for 24 developed economies by using unbalanced panel data analysis. For this purpose, the data set is annually covered for the period from 1985 to 2012 in these economies. According to consequences of this study, economic growth, government debt as a percent of GDP and government expenditure as a percent of GDP have positive and statistically significant relationship while expenditure rule and inflation rate have negative and statistically significant related to unemployment rate. On the other hand, economic growth is correlated that unemployment rate and tax revenue as percent of GDP have positive and statistically significant and, budget balance rule, government debt as a percent of GDP and government expenditure as a percent of GDP have negative and statistically significant