Public debt and financial sustainability of the italian public finances

Federico Pica and Salvatore Villani

STUDI ECONOMICI, 2012, vol. 2012/107, issue 107, 5-34

Abstract: The analysis presented in this paper deals with two main issues: the one of debt sustainability, meant in the particular acceptation proposed in this article, and the one of the effects of debt decumulation for the various territorial communities, in particular for the weak areas of Italy (Mezzogiorno). The proposed analysis aims at showing some possible outcomes of the current economic crisis. Four hypotheses, concerning various kinds of constraints regulating the variation over time of the debt amount, are proposed: the zero (or constant) debt hypothesis, the invariance of GDP-debt ratio, the hypothesis of a ceiling on public debt and, lastly, the case of a programmed path of public debt reduction (the Fiscal Compact). In the best case proposed (the zero debt hypothesis), the results prefigure a prognosis of stagnation, which is more serious for the enterprises and the families of the Mezzogiorno than for the rest of Italy. .

JEL-codes: H63 H72 H73 H74 (search for similar items in EconPapers)
Date: 2012
References: Add references at CitEc
Citations:

Downloads: (external link)
http://www.francoangeli.it/riviste/Scheda_Rivista. ... 540&Tipo=ArticoloPDF (text/html)
Single articles can be downloaded buying download credits, for info: https://www.francoangeli.it/DownloadCredit

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:fan:steste:v:html10.3280/ste2012-107001

Ordering information: This journal article can be ordered from
http://www.francoang ... io.aspx?IDRivista=59

Access Statistics for this article

STUDI ECONOMICI is currently edited by FrancoAngeli

More articles in STUDI ECONOMICI from FrancoAngeli Editore
Bibliographic data for series maintained by Stefania Rosato ().