Public Debt Management & Fiscal Sustainability in Italy

Angela . Uwakwe ()
Additional contact information
Angela . Uwakwe: ;Cardiff University; UK

No AIUB-BUS-ECON-2008-20, AIUB Bus Econ Working Paper Series from American International University-Bangladesh, Office of Research and Publications (ORP)

Abstract: This paper examines the government finances for Italy to determine if they satisfy the Inter-temporal Budget Constraint (IBC) especially since post-Maastricht. Italy met the convergence criteria in order to be accepted as an EMU country. Arghyrou and Luintel (2005) examine the finances of Italy up to the pre-Maastricht convergence period and find that the finances of Italy showed weak form sustainability demonstrating a Maastricht effect. Standard assumptions have been that Italy’s true position of un-sustainability would be inherent post-Maastricht. This paper examines this issue and finds: (i) that the debt to GDP series shows that the finances of Italy are un-sustainable; (ii) however the government revenue and expenditure show weak form sustainability. This paper also finds a downward trend of the government debt to GDP ratio and a convergence of the government revenue and expenditure in recent times. This implies that the finances of Italy satisfy the IBC and indeed continue to maintain the result of weak sustainability even post-Maastricht.

New Economics Papers: this item is included in nep-eec and nep-mac
Date: Written
View list of references

Downloads: (external link)
http://orp.aiub.edu/FileZone/OtherFiles/orpadmin-8 ... BUS-ECON-2008-20.pdf First version, (application/pdf)
Our link check indicates that this URL is bad, the error code is: 500 Can't connect to orp.aiub.edu:80 (connect: timeout)

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: http://EconPapers.repec.org/RePEc:aiu:abewps:75

Access Statistics for this paper

More papers in AIUB Bus Econ Working Paper Series from American International University-Bangladesh, Office of Research and Publications (ORP)
Series data maintained by Ziarat H. Khan ().