Do National Numerical Fiscal Rules really shape fiscal behaviours in developing countries? A treatment effect evaluation

► I study the effect of Fiscal Rules (FRs) on fiscal discipline in developing states. ► I use the propensity scores-matching method to address the self-selection problem. ► I find that FRs do improve fiscal discipline in developing countries. ► The discipline-enhancing effect of FR result varies with the types of rules. ► The effect also differs depending on countries' structural characteristics.