Neyapti, B.2016-02-082016-02-0820130165-1765http://hdl.handle.net/11693/26727Fiscal decentralization (FD) and fiscal rules (FR) are institutional mechanisms that are implemented by varying degrees in increasing number of countries. This paper investigates empirically the effect of FR on the effectiveness of FD in achieving fiscal discipline. Panel evidence strongly supports that balanced budget and expenditure rules help FD to achieve this goal, while debt rule has a direct disciplinary effect.EnglishBudget deficitsFiscal decentralizationFiscal institutionsFiscal rulesArticle10.1016/j.econlet.2013.10.0061873-7374