Fiscal sustainability in emerging countries: Evidence from Iran and Turkey

Amir Kia

Journal of Policy Modeling, 2008, vol. 30, issue 6, 957-972

Abstract: This paper investigates the fiscal sustainability of two emerging countries - Iran (an oil-producing country) and Turkey (an agricultural country) - for both stochastic and non-stochastic environments. Cointegration and multicointegration methodologies were used to evaluate fiscal budgeting processes in these countries. A model for testing the sustainability of a fiscal policy, based on Barro's tax smoothing, was also developed to test the Iranian fiscal policy. It was found that the fiscal budgeting process in both countries is not sustainable. Furthermore, the Iranian fiscal policy, as far as oil and gas income is concerned, is not a fully responsible policy.

Keywords: Fiscal; sustainability; Multicointegration; and; tax; smoothing (search for similar items in EconPapers)
Date: 2008
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (23)

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S0161-8938(08)00022-7
Full text for ScienceDirect subscribers only

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:eee:jpolmo:v:30:y:2008:i:6:p:957-972

Access Statistics for this article

Journal of Policy Modeling is currently edited by A. M. Costa

More articles in Journal of Policy Modeling from Elsevier
Bibliographic data for series maintained by Catherine Liu ().