Financial Integration and Fiscal Policy

Davide Furceri, Davide Furceri, Aleksandra Zdzienicka

Risultato della ricerca: Article

9 Citazioni (Scopus)

Abstract

The aim of this paper is to assess the impact of financial integration on fiscal policy. Using an unbalanced panel of 31 OECD countries from 1970 to 2009, the paper shows that financial integration has significant disciplinary effects by reducing fiscal deficits and (discretionary) spending volatility. In addition, we find that financial integration affects the composition of government debt and enhances risk-sharing by increasing the share of foreign debt to the total. The results are robust to both de jure and de facto measures of financial integration, different measures of budget balance, and different estimation strategies.
Lingua originaleEnglish
pagine (da-a)805-822
Numero di pagine18
RivistaOpen Economies Review
Volume23
Stato di pubblicazionePublished - 2012

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All Science Journal Classification (ASJC) codes

  • Economics and Econometrics

Cita questo

Furceri, D., Furceri, D., & Zdzienicka, A. (2012). Financial Integration and Fiscal Policy. Open Economies Review, 23, 805-822.