Search results for "public debt"
showing 10 items of 19 documents
From the Global Crisis to the National Crises: The Case of the European Union Countries
2013
Abstract The aim of this paper is to examine the way in which the 2007 global financial crisis has emerged into more specific national ones. The interventionist policies responses have led to an intensification of the economic unhealthy situations in some countries of the European Union. At the same time through well-chosen economic policies other countries, managed to escape from the threat of collapse of their national economies.
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…
La financiación de las empresas mediterráneas de Alfonso el Magnánimo. Bailía General, Subsidios de Cortes y Crédito Institucional en Valencia (1419-…
2003
This article studies the role of the General Bailía of Valencia—the office for the management of the royal domain resources of the kingdom of Valencia- in the political and military projects of Alfonso V the Magnanimous in the Mediterranean. In this way its also analysed the role of the Parliament, a class representation of the kingdom, and the city of Valencia, main urban centre The incomes from the royal domain, the donations from the Parliaments as a representative assemblies, and the loans provided by the city of Valencia contributed in a decisive way to the guarantee of the economic viability of Alfonso Vs military expansion. It is right that the main instruments that the king had to a…
Dealing with the Public Debt Burden. A system dynamics approach to implementing sustainable financial policies in the Italian State
2012
In the last decades in several mature democracies the problem of debt emerged as a violation of intergenerational equal treatment due to high expenditures concentration and dilution of costs by mean of debt creation. So far this issue has been analyzed from a statistical and a socio-economic perspective, which identified the high political interference as the main dysfunction of country debt management. There are no studies which frame the issue by focusing on State institutions as performance-oriented organizations, according to this perspective such organizations have to respect dynamically trade-off between development and the debt reduction through a mix of levers such as: funds acquisi…
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.
Fiscal sustainability in the EU: From the short-term risk to the long-term challenge
2015
Abstract The paper analyses fiscal sustainability of public debt using a dynamic computable general equilibrium model. First, we identify the short-term risk for fiscal stress at country level; second, we investigate the assumption of convergence towards the government debt threshold (medium-term challenge); and, third, the requirement that debt projections do not show unsustainable trends (long-term challenge). The empirical implementation includes 18 EU Member States. Our findings show that the constant tax rate that stabilizes the public debt converges to 50 percentage of GDP for all the sample countries and tax revenues are the main driving forces for fiscal sustainability. Also our fin…
Can re-regulation of the financial sector strike back public debt?
2015
This paper analyzes the impact of financial sector policy changes on the dynamics of public debt. Using a panel of 89 countries from 1973 to 2005, we find that while the implementation of (large) financial liberalisation policies significantly raises the public debt growth rate, the adoption of financial re-regulation measures leads to a mild reduction of public debt. Looking at the different typologies of financial sector policy changes, we show that stricter banking supervision, privatisations and restrictions to international capital flows contribute to a fast decline of the growth rate of public debt. In contrast, the removal of entry barriers and the elimination of interest rate contro…
Keeping Public Debt Sustainable in an Equitable Way
2022
The COVID-19 pandemic has claimed over 5 million lives thus far. This grim figure would have been higher still without the strong and timely fiscal support provided by governments around the globe, including support for health sector and the development and deployment of vaccines. The IMF has noted that “in 2020, fiscal policy proved its worth. The increasing public debt in 2020 was fully justified by the need to respond to COVID 19 and its economic, social, and financial consequences” (Gaspar, 2021). How to keep debt sustainable is becoming a policy imperative, made all the more challenging by the lingering effects of the pandemic, particularly on low-income groups. In this article we summ…
Testing for public debt sustainability using band spectrum regression analysis "
2014
In this note we focus on the response of the primary surplus to debt (ratios to GDP)over a low frequency band (associated with cycles with period between eight and sixteen years) to filter out business cycle effects. For this purpose, we use band spectrum regression, using both the Fourier Transform and the Discrete Wavelet transform, fitted to pooled panel dataset of 18 EMU countries. The empirical findings give evidence of fiscal fatigue within Eurozone:the response of primary surplus to debt will decrease over a finite debt limit.
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…