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Fiscal Rules and Strategies under Externalities and Uncertainties

Objective

The FIRSTRUN project advances the theoretical and practical debates on the effective mechanisms of fiscal policy coordination. It analyzes the very reason why fiscal policy coordination may be needed in the first place, namely cross-country externalities (spillovers) related to national fiscal policies. Specifically, it identifies different types of spillover effects, investigates how they work in the EU and in the EMU, and analyses whether they work in the same fashion under different states of the economy and over the short and the long run. The project describes different forms that fiscal policy coordination can take in practice, e.g. ex-ante coordination and risk-sharing, and provides a critical assessment of the mechanisms already put in place. The FIRSTRUN project provides new tools for fiscal policy design by incorporating the new EU fiscal rules regarding e.g. government debt and deficit into applied models for fiscal policy evaluation. The tools can be used to support the decision makers in the implementation of the enhanced EU economic governance. FIRSTRUN also investigates the political economy of fiscal cooperation, for instance, the difficult inter-play between domestic political pressures and EU level priorities as well concerns about legitimation. By shedding light on the character of the governance framework for fiscal coordination, FIRSTRUN will highlight the features that work well or badly and provide insights that the EU level can exploit in its surveillance and advisory roles.

Field of science

  • /social sciences/sociology/governance/taxation
  • /social sciences/economics and business/economics/political economy

Call for proposal

H2020-EURO-SOCIETY-2014
See other projects for this call

Funding Scheme

RIA - Research and Innovation action

Coordinator

ELINKEINOELAMAN TUTKIMUSLAITOKSEN KANNATUSYHDISTYS RY
Address
Arkadiankatu 23B
00100 Helsinki
Finland
Activity type
Research Organisations
EU contribution
€ 529 063

Participants (7)

INSTITUT FUER HOEHERE STUDIEN - INSTITUTE FOR ADVANCED STUDIES
Austria
EU contribution
€ 191 156,25
Address
Josefstaedter Strasse 39
1080 Wien
Activity type
Higher or Secondary Education Establishments
LONDON SCHOOL OF ECONOMICS AND POLITICAL SCIENCE
United Kingdom
EU contribution
€ 266 910
Address
Houghton Street 1
WC2A 2AE London
Activity type
Higher or Secondary Education Establishments
LUISS LIBERA UNIVERSITA INTERNAZIONALE DEGLI STUDI SOCIALI GUIDO CARLI
Italy
EU contribution
€ 266 250
Address
Viale Pola 12
00198 Roma
Activity type
Higher or Secondary Education Establishments
CASE - CENTRUM ANALIZ SPOLECZNO- EKONOMICZNYCH- FUNDACJA NAUKOWA
Poland
EU contribution
€ 99 125
Address
Aleja Jana Pawla Ii 61B
01 031 Warszawa
Activity type
Research Organisations
EKONOMICKY USTAV SLOVENSKEJ AKADEMIE VIED
Slovakia
EU contribution
€ 96 500
Address
Sancova 56
81105 Bratislava
Activity type
Research Organisations
CENTRE FOR EUROPEAN POLICY STUDIES
Belgium
EU contribution
€ 446 562,50
Address
Place Du Congres 1
1000 Bruxelles
Activity type
Research Organisations
NATIONAL INSTITUTE OF ECONOMIC AND SOCIAL RESEARCH LBG
United Kingdom
EU contribution
€ 302 316,25
Address
Dean Trench Street 2
SW1P 3HE London
Activity type
Research Organisations