Does Fiscal Transparency Matter? The Evidence from Transition Economies


According to both the theory and empirical research for developed economies, when countries follow transparent fiscal policy this will contribute to better fiscal performance. Our paper examines the role of fiscal policy transparency in establishing better fiscal discipline in transition economies. The empirical investigation, which provides the core of this paper, includes an analysis of interdependences between fiscal transparency and fiscal performance. We use a comprehensive index for fiscal transparency compiled by Jarmuzek et al (2006). In order to test the impact of transparency on fiscal policy performance we base our empirical model within a framework of career-concerns with political parties.

Mariusz Jarmuzek, 2006...

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