The effect of fiscal system reform on fiscal policy outcomes

Research output: Contribution to journalArticlepeer-review


We investigate how reform in governmental accounting affects fiscal policy outcomes including debt, balance, and fiscal transparency. Since a change from cash to accrual accounting can be regarded as a natural experiment among governments, a fixed-effects model is exploited. We discover that the change diminishes debt in developed countries, but expands it in less-developed ones, with strong effects in highly indebted countries. The change improves balance in developed countries and worsens it in less-developed countries, which is significant for developed countries with large deficits. Transparency is improved only in less transparent developed countries.

Original languageEnglish (US)
Pages (from-to)186-200
Number of pages15
JournalScottish Journal of Political Economy
Issue number2
StatePublished - May 1 2020


  • fiscal policy outcomes
  • fiscal system reform
  • fiscal transparency
  • governmental accounting
  • quantile regression

ASJC Scopus subject areas

  • Sociology and Political Science
  • Economics and Econometrics


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