(1) Swiss Graduate School of Public Administration – IDHEAP, University of Lausanne, Route de la Maladière 21, Chavannes-Lausanne, CH-1022, Switzerland
Abstract:
This paper concerns the political economy of budget balances and focuses on fiscal referendums. It specifically suggests – on the basis of theoretical arguments –that any analysis of fiscal referendums must take their spending thresholds into account. Thus, it claims that mandatory fiscal referendums can impose greater constraints than optional fiscal referendums. In conclusion, various recommendations based on this observation are proposed.JEL classification: D70, H72.