Asymmetric dynamics in the social contributions and social benefits nexus in Greece

Panagiotis Palaios () and Evangelia Papapetrou ()
Additional contact information
Panagiotis Palaios: National and Kapodistrian University of Athens
Evangelia Papapetrou: National and Kapodistrian University of Athens

Economic Change and Restructuring, 2019, vol. 52, issue 4, No 1, 327-349

Abstract: Abstract This paper studies the existence of asymmetries and the presence of a causal relationship between social benefits and social contributions in Greece over the period 1999Q1–2016Q4 using threshold cointegration estimation techniques (TAR and MTAR models) and asymmetric error-correction model estimation. In doing so the study applies conventional and quantile unit root tests to examine the order of integration of the variables. The empirical results support the hypothesis that social benefits and social contributions are cointegrated with threshold adjustment and the adjustment process is asymmetric both in the short and long run. ECM model estimation indicates that the response of the government to a worsening budget is significantly larger than to an improving budget, and the adjustment path towards momentum equilibrium takes place through social contributions, when the budget is in its negative phase (below threshold). Granger causality tests and distributed lag asymmetry tests indicate that social benefits represent an exogenous variable.

Keywords: Nonlinear; Threshold cointegration; Asymmetric ECM; Unit root tests; Structural breaks; Social benefits; Social contributions (search for similar items in EconPapers)
JEL-codes: C32 C51 E62 H55 (search for similar items in EconPapers)
Date: 2019
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
http://link.springer.com/10.1007/s10644-018-9234-9 Abstract (text/html)
Access to the full text of the articles in this series is restricted.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:kap:ecopln:v:52:y:2019:i:4:d:10.1007_s10644-018-9234-9

Ordering information: This journal article can be ordered from
http://www.springer. ... nt/journal/10644/PS2

DOI: 10.1007/s10644-018-9234-9

Access Statistics for this article

Economic Change and Restructuring is currently edited by George Hondroyiannis

More articles in Economic Change and Restructuring from Springer
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().