(Un-)Sustainability of Public Finances in German Laender: A Panel Time Series Approach

Heiko Burret (), Lars Feld and Ekkehard Köhler

Economic Modelling, 2016, vol. 53, issue C, 254-265

Abstract: This paper provides evidence that most German states (Laender) have unsustainable public finances by exploiting a newly compiled database covering the years 1950–2011. Although the Laender are closely intertwined we are the first to apply “second generation” panel techniques that control for correlation among the Laender. A unique identification strategy for the selection of relevant sub-panels improves the robustness of the tests.

Keywords: Fiscal sustainability; Federalism; Panel cointegration; Cross dependence (search for similar items in EconPapers)
JEL-codes: E62 H62 H72 H77 (search for similar items in EconPapers)
Date: 2016
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (16)

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Working Paper: (Un-)Sustinability of public finances in German Laender: A panel time series approach (2015)
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Persistent link: https://EconPapers.repec.org/RePEc:eee:ecmode:v:53:y:2016:i:c:p:254-265

DOI: 10.1016/j.econmod.2015.12.001

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