Efficiency of fiscal policy rules: Selected OECD countries and Turkey implementations

Discretionary fiscal policy to be implemented with Keynesian ideas in the beginning 1930s has replaced fiscal rules towards the end of the 20th century. This change in the countries where the budget deficit and political interests has played an important role. Over last two decades the study of fiscal policy rules applied in the form of restrictions on the fiscal policy instruments has attracted a growing attention from researchers and policy-makers.Fiscal rules, which have been used increasingly by many countries, especially in the member states of the European Union and OECD, show different characteristics according to economic conditions and governance culture of the countries and the targets aimed to be reached after the practice of rule-based fiscal policies.The maingoal of this study is to offer some specific fiscal rule proposals backed with a quantitative analysis by means of searching rapidly growing literature on the field of fiscal rules.