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democracies and non-democracies, and estimate the degree to which fiscal deteriorations are unwound after elections. We show three …, these deteriorations occur in democracies and non-democracies alike. Third, the deterioration in primary deficits is not …
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This paper estimates the causal effect of fiscal rules on political budget cycles in a sample of 67 developing countries over the period 1985-2007. We exploit the geographical pattern in the adoption of fiscal rules to isolate an exogenous source of variation in the adoption of national fiscal...
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