How to calibrate fiscal rules : a primer

Baum, Anja and Eyraud, Luc and Hodge, Andrew and Jarmuzek, Mariusz and Kim, Young and Mbaye, Samba and Ture, Elif (2018): How to calibrate fiscal rules : a primer. Published in: International Monetary Fund: How To Notes (March 2018)

Abstract

This note provides guidance on how to calibrate fiscal rules; that is, how to determine the thresholds (ceiling, floor, or target) for specific fiscal aggregates constrained by rules. The note focuses, more specifically, on the calibration of the debt, balance, and expenditure rules.

• Item Type: MPRA Paper
• Language: English
• Keywords: fiscal rules, stochastic simulations
• Subjects: C - Mathematical and Quantitative Methods > C1 - Econometric and Statistical Methods and Methodology: General > C13 - Estimation: General; C - Mathematical and Quantitative Methods > C1 - Econometric and Statistical Methods and Methodology: General > C15 - Statistical Simulation Methods: General; H - Public Economics > H3 - Fiscal Policies and Behavior of Economic Agents; H - Public Economics > H6 - National Budget, Deficit, and Debt

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