Abstract

CHAMORRO NARVAEZ, Raúl Alberto  and  URREA BERMUDEZ, Andrés Felipe. Effects of fiscal rules on regional public debt sustainability in Colombia. Cuad. Econ. [online]. 2016, vol.35, n.spe67, pp.207-251. ISSN 0121-4772.  https://doi.org/10.15446/cuad.econ.v35n67.52461.

This paper shows empirical evidence about the effects of fiscal rules on regional public debt sustainability in Colombia. By using panel data methodology, we found that the Law 358 of 1997, fiscal dependency and economic activity, all have a positive effect on regional debt sustainability. Meanwhile, fiscal effort and contingent liabilities, impact it in a negative way. Finally, features like accountability, quality of implementation of public policies and political budget cycle, all have a significant effect on the capacity to pay sub-national debt

Keywords : Fiscal rules; sustainability; public debt; sub-national government; contingent liabilities.

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