Fiscal Institutions and Sustainability of Public Debt in Germany

20 Pages Posted: 31 May 2012

See all articles by Florian Höppner

Florian Höppner

affiliation not provided to SSRN

Christian Kastrop

Bundesministerium der Finanzen

Date Written: April 1, 2004

Abstract

Höppner and Kastrop examine the role of fiscal institutions and budgetary procedures in Germany with respect to the objective of safeguarding sound public finances in the long-run. The paper analyses the main factors underlying debt developments in Germany in recent decades. It also examines budgetary prospects, pointing to the increasing share of public expenditure which depends on entitlements which cannot be modified over the short-term and to the spending increases stemming from the ageing process. The paper then moves to considering the role of medium-term planning in the German budget and the current approach to long-term issues. In this context, Höppner and Kastrop evaluate some possible reforms. In particular, they consider the use of indicators concerning the quality of public finances, such as the “Public expenditure for growth and sustainable development”. In view of the federal structure of the country, they also examine the possibility of introducing a National Stability Pact.

Suggested Citation

Höppner, Florian and Kastrop, Christian, Fiscal Institutions and Sustainability of Public Debt in Germany (April 1, 2004). Available at SSRN: https://ssrn.com/abstract=2070660 or http://dx.doi.org/10.2139/ssrn.2070660

Florian Höppner (Contact Author)

affiliation not provided to SSRN ( email )

Christian Kastrop

Bundesministerium der Finanzen ( email )

Detlev-Rohwedder-Haus
Wilhelmstrße 97
Berlin, D-10117
Germany
00-49-30-22424310 (Phone)
00-49-30-22421867 (Fax)

Do you have negative results from your research you’d like to share?

Paper statistics

Downloads
75
Abstract Views
745
Rank
572,227
PlumX Metrics