The five little PIIGS and the big bad Troika

Anastasios Katos () and Eleni Katsouli ()
Additional contact information
Anastasios Katos: University of Macedonia, Greece
Eleni Katsouli: University of Macedonia, Greece

Economics Bulletin, 2012, vol. 32, issue 1, 1001-1007

Abstract: The purpose of this paper is to investigate whether efforts to eliminate the budget deficits in Portugal, Ireland, Italy, Greece and Spain, as it has been suggested by Troika (European Commission, International Monetary Fund, and European Central Bank), will delay the economic growth of these countries than enhance it. For this purpose a state-space equation for each country is estimated using maximum likelihood and Kalman filter. The results indicated that policies aiming at increasing labor productivity positively influence economic growth in all countries, whilst policies aiming at reducing public deficits positively influence economic growth in Portugal and Ireland, and negatively influence economic growth in Italy, Greece and Spain.

Keywords: Economic growth; Labor productivity; Budget deficit; Troika; Kalman filter; Eurozone (search for similar items in EconPapers)
JEL-codes: E6 H6 (search for similar items in EconPapers)
Date: 2012-03-27
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

Downloads: (external link)
http://www.accessecon.com/Pubs/EB/2012/Volume32/EB-12-V32-I1-P95.pdf (application/pdf)

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:ebl:ecbull:eb-11-00786

Access Statistics for this article

More articles in Economics Bulletin from AccessEcon
Bibliographic data for series maintained by John P. Conley ().