FISCAL SUSTAINABILITY IN CEE COUNTRIES – THE CASE OF THE CZECH REPUBLIC, HUNGARY AND POLAND
Joanna Mackiewicz-Lyziak ()
Additional contact information
Joanna Mackiewicz-Lyziak: University of Warsaw
Equilibrium. Quarterly Journal of Economics and Economic Policy, 2015, vol. 10, issue 2, pages 53-71
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)
References: Add references at CitEc
Citations Track citations by RSS feed
Downloads: (external link)
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: http://EconPapers.repec.org/RePEc:pes:ierequ:v:10:y:2015:i:2:p:53-71
Access Statistics for this article
Equilibrium. Quarterly Journal of Economics and Economic Policy is currently edited by Adam P. Balcerzak
More articles in Equilibrium. Quarterly Journal of Economics and Economic Policy from Institute of Economic Research Contact information at EDIRC.
Series data maintained by Adam P. Balcerzak ().