The Case for Restricting Fiscal Policy Discretion

# The Case for Restricting Fiscal Policy Discretion > OpenAlex Metadata Hub · https://openalex.org/W2123016516 ## Bibliographic - **DOI:** 10.1162/003355303322552838 - **Year:** 2003 - **Citations:** 752 - **Open Access:** No (closed) - **License:** — - **Source:** https://doi.org/10.1162/003355303322552838 ## Authors - Antonio Fatás - Ilian Mihov ## Abstract This paper studies the effects of discretionary fiscal policy on output volatility and economic growth. Using data for 91 countries, we isolate three empirical regularities: (1) governments that use fiscal policy aggressively induce significant macroeconomic instability; (2) the volatility of output caused by discretionary fiscal policy lowers economic growth by more than 0.8 percentage points for every percentage point increase in volatility; (3) prudent use of fiscal policy is explained to a large extent by the presence of political constraints and other political and institutional variables. The evidence in the paper supports arguments for constraining discretion by imposing institutional restrictions on governments as a way to reduce output volatility and increase the rate of economic growth. ## Keywords Discretion, Center (category theory), Political science, Fiscal policy, Public administration, Economics, Law, Macroeconomics ## Concepts - Discretion - Center (category theory) - Political science - Fiscal policy - Public administration - Economics - Law - Macroeconomics - Crystallography - Chemistry --- *Metadata only — full text not imported unless Open Access license permits.*

Bài “The Case for Restricting Fiscal Policy Discretion” được TradingBase chuyển thành Knowledge Product cho trader — không phải trang đọc abstract OpenAlex. Tóm lược học thuật (đã diễn giải): This paper studies the effects of discretionary fiscal policy on output volatility and economic growth. Using data for 91 countries, we isolate three empirical regularities: (1) governments that use fiscal policy aggressively induce significant macroeconomic instability; (2) the volatility of output caused by discretionary fiscal policy lowers economic growth by more than 0.8 percentage points for every percentage point increase in volatility; (3) prudent use of fiscal policy is explained to a large extent by the presence of political constraints and other political and institutional variables. The evidence in the paper supports arguments for constraining discretion by imposing institutional restrictions on governments as a way to reduce output volatility and increase the rate of economic growth. Phần Trading Insights bên dưới nối nghiên cứu với Forex, vàng, USD, lãi suất và risk regime — để bạn đưa vào journal và playbook. Metadata DOI/OA chỉ là rail tham chiếu; nội dung chính là summary, takeaways và ứng dụng thị trường do Content Factory sinh.