Budgetary rules and budget process : theory, empirics, and the case of the Czech republic

Abstract

We survey theories of impacts of budgetary rules in the budget process, review empirical evidence and on the basis of comparative studies design an optimal shape of the Czech budgetary rules. The theoretical section focuses on conventional and non-intuitive effects of spending caps under alternative electoral systems.

Empirical sections conveys a meta-analysis of five studies on fiscal governance in Central and Eastern European countries. The final part recommends changes in the budget process of the Czech Republic.

Keywords

• budget process
• fiscal rules
• fiscal governance
• public finance