Fiscal sustainability in CEE countries – the case of the Czech Republic, Hungary and Poland

Joanna Mackiewicz-Łyziak

No 36/2014, Working Papers from Institute of Economic Research

Abstract: The aim of the study is to assess fiscal sustainability in the Czech Republic, Hungary and Poland and to test for existence of fiscal dominance in these countries in the context of the fiscal theory of the price level. The empirical study is conducted using unit root tests and cointegration analysis with possible structural breaks. The approach is consistent with so called backward-looking approach for fiscal dominance testing proposed by Bohn (1998). The results suggest that in the Czech Republic and Poland fiscal dominance prevailed in the analyzed period, while in Hungary – monetary dominance. The result for Hungary may be caused, however, by a one-time reduction in debt resulting from changes in pension system.

Keywords: fiscal sustainability; monetary and fiscal dominance; primary balance; debt; cointegration (search for similar items in EconPapers)
JEL-codes: E62 H62 H63 (search for similar items in EconPapers)
Date: 2014-12, Revised 2014-12
New Economics Papers: this item is included in nep-mac
References: Add references at CitEc
Citations:

Downloads: (external link)
http://www.badania-gospodarcze.pl/images/Working_Papers/2014_No_36.pdf First version, 2014 (application/pdf)

Related works:
Journal Article: FISCAL SUSTAINABILITY IN CEE COUNTRIES – THE CASE OF THE CZECH REPUBLIC, HUNGARY AND POLAND (2015)
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:pes:wpaper:2014:no36

Access Statistics for this paper

More papers in Working Papers from Institute of Economic Research Contact information at EDIRC.
Bibliographic data for series maintained by Adam P. Balcerzak ( this e-mail address is bad, please contact ).