Fiscal Archetypes in the European Union
Fiscal Archetypes in the European Union

Summary/Abstract: A novel statistical approach is used to discern main types of public finance management (or fiscal archetypes) among countries in the European Union. Data, spanning 2002 to 2014, reveals four main archetypes across the dimensions of fiscal policy. Two of them are fiscally sustainable – one comprises big but responsible spenders, and the other – lean governments. Two of the archetypes are not sustainable, with expenditures exceeding revenue. Fiscal archetypes can be fruitfully used to prescribe tailored public policy interventions for countries, taking into account their specific economic and institutional circumstances and thus increasing the efficiency of policy.

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