Photo Jocelyne Zoumenou

JOCELYNE ZOUMENOU

DOCTORANT(E)

Research group

    Macroéconomie internationale, finance, matières premières et économétrie financière

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2024-29

Do Binding Fiscal Rules Enhance Fiscal Stability? Evidence from European Union Countries

Antonia Lopez Villavicencio, Jocelyne Zoumenou

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Abstract
This study investigates the impact of fiscal rules on EU countries' fiscal stability, particularly within the Stability and Growth Pact (SGP) framework. By rigorously addressing endogeneity concerns, we show that compliance with budget balance rules (BBR) contributes to fiscal stability. However, countries that comply with all the targets imposed by the SGP simultaneously or that established a constitutional BBR do not perform better than countries that comply exclusively with the budget balance rule. Finally, our results indicate that strong fiscal rules are not necessary to achieve better fiscal discipline.
Mot(s) clé(s)
Fiscal rules; Compliance; European Union; Instrumental Variables; Treatment Effect Models
2023-21

On the impact of fiscal policy on inflation: The case of fiscal rules

Jocelyne Zoumenou

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Abstract
This paper examines the impact of fiscal rules on inflation across 79 countries from 1985 to 2021, employing entropy balancing as the methodology. By adopting this approach, the study addresses potential endogeneity concerns and takes into account variations among different country groups, including advanced economies, emerging markets, developing economies, and low-income countries. The primary outcome derived from the analysis indicates a negative relationship between fiscal rules and inflation in emerging and low-income countries. Moreover, this effect is observed for moderate and high inflation rates. These results are robust to different specifications.
Mot(s) clé(s)
Fiscal policy ; Inflation ; Propensity score methodology
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