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Auditors and Fiscal Policy: Empirical Evidence on a Little Big Institution

Title: Auditors and Fiscal Policy: Empirical Evidence on a Little Big Institution
Authors: Mark Schelker; Reiner Eichenberger; Jel-code D H
Contributors: The Pennsylvania State University CiteSeerX Archives
Source: https://www.unifr.ch/finwiss/assets/files/Publikationen/96_AuditorsandFiscalPolicyEmpiricalEvidenceonaLittleBigInstitution.pdf.
Collection: CiteSeerX
Subject Terms: Public auditor; audit court; auditing; transparency; information asymmetry; fiscal
Description: Various political institutions designed to control the government have been analyzed in the academic literature. However, an important institution has been neglected so far: independent auditing institutions with an extended mandate to audit the budget draft and individual policy proposals. We argue that such auditors improve transparency and provide essential information on the impact of policy proposals on common pool resources, which leads to less wasteful spending. We empirically analyze the impact of such auditors on fiscal policy at the Swiss local level. Auditors who can evaluate and criticize policy proposals ex ante to policy decisions, significantly reduce the general tax burden and public expenditures. The results are similar for different datasets and robust to various changes in the econometric specification. (121 words)
Document Type: text
File Description: application/pdf
Language: English
Relation: http://citeseerx.ist.psu.edu/viewdoc/summary?doi=10.1.1.652.4279
Availability: http://citeseerx.ist.psu.edu/viewdoc/summary?doi=10.1.1.652.4279
Rights: Metadata may be used without restrictions as long as the oai identifier remains attached to it.
Accession Number: edsbas.CCA00297
Database: BASE