Do Eurozone Countries Cheat with their Budget Deficit Forecasts?

Preprint

1 January 2005

preprint

Published in RePEc

Abstract

We estimate the political economy determinants of budget deficit forecast errors. Since the adoption of the Stability Pact, Eurozone governments have manipulated forecasts before elections. The political orientation and the institutional design of governments also affects the quality of forecasts.

Keywords

EUROZONE COUNTRIES
POLITICAL ECONOMY
DEFICIT FORECAST
COUNTRIES CHEAT
STABILITY PACT
BUDGET DEFICIT
FORECASTS

All Related Versions

Version 1, 2005-01-01, RePEc

This publication has 0 references indexed in Scilit: