Search results for "political budget cycles"

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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
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Political determinants of the fiscal sustainability: evidence from six individual developed countries.

2007

This paper aims at assessing the fiscal sustainability and its political determinants in six countries, namely France, Germany, Greece, Italy, the United Kingdom, the United States. First, using the recent sustainability approach of Bohn (1998) based on fiscal reaction function, econometric findings using OLS reveal a positive response of the primary surplus to changes in debt in several countries. In other words, fiscal policy is sustainable in France, Italy, the United Kingdom, the United States, but not in Germany and Greece. Second, by introducing political dummy variables, we test the electoral budget cycle, the partisan cycle and the government coalition theories. We find the presence…

Public debt sustainability[ SHS.ECO ] Humanities and Social Sciences/Economies and financesPolitical budget cyclestime series.time seriesFiscal reaction function[SHS.ECO]Humanities and Social Sciences/Economics and Finance[SHS.ECO] Humanities and Social Sciences/Economics and Finance
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