Pinto Barbosa, António Soares2019-12-032019-12-031984-02Barbosa, A. S. Pinto, Stabilization Under Rigidity (February, 1984). FEUNL Working Paper Series No. 24http://hdl.handle.net/10362/89165This paper explores some implications for stabilization policy of the existence of political or institutional limits on the use of control variables. The importance of some non-linear autoregressive processes for modeling government behaviour in the face of such constraints is high lighted. Normative implications for constitutional design are explored by comparing the relative efficiency of a balanced budget versus a spending limit rule.engworking paper