Search results for " Public debt sustainability"

showing 2 items of 2 documents

Does politics matter in the conduct of fiscal policy? Political determinants of the fiscal sustainability: Evidence from seven individual Central and…

2007

This paper aims at assessing the fiscal sustainability and its political determinants in seven Central and Eastern European Countries (CEEC), namely Estonia, Latvia, Lithuania, Poland, Slovenia, Slovakia and the Czech Republic. First, using the recent sustainability approach of Bohn (1998) based on fiscal reaction function, econometric findings using Ordinary Least Squares (OLS) reveal a positive response of the primary surplus to changes in debt in several countries. In other words, fiscal policy is sustainable in Baltic countries, Slovenia and Slovakia, but not in Poland and in the Czech Republic. Second, by introducing political dummy variables, we test the electoral budget cycle and the…

Economic policyjel:E62media_common.quotation_subjectjel:H62Fiscal reaction function Public debt sustainability Political budget cycles Time seriesPolitical Time series.PoliticsDummy variableDebtEconomics[ SHS.ECO ] Humanities and Social Sciences/Economies and finances[SHS.ECO] Humanities and Social Sciences/Economics and Financemedia_commonpolitical budget cycleslcsh:Economic theory. DemographyFiscal reaction function[SHS.ECO]Humanities and Social Sciences/Economics and FinanceFiscal unionFiscal policylcsh:HB1-3840Political Time seriesEastern europeanPublic debt sustainabilitySustainabilityjel:P16time seriesFiscal sustainabilityGeneral Economics Econometrics and FinancePanoeconomicus
researchProduct

A wavelet analysis of US fiscal sustainability

2015

Abstract In this paper, we reassess the relationship between primary deficit and lagged debt to GDP ratio (Bohn, 1998), to test for US debt sustainability over the period 1795–2012. Our analysis is rooted in the wavelet domain enabling the detection of interesting patterns and otherwise hidden information. We find evidence of long term fiscal sustainability but only up until 1995 and also we show that governments tend to respond more vigorously to budget deficits when the level of debt is high rather than low.

MacroeconomicsEconomics and EconometricsWavelet coherencemedia_common.quotation_subjecteducationDebt-to-GDP ratioPrimary deficitSettore SECS-P/05 - EconometriahumanitiesTerm (time)WaveletDebtSustainabilityEconomicsWavelet coherence Public debt sustainability Time–frequency decompositionFiscal sustainabilityhealth care economics and organizationsmedia_common
researchProduct