CURRENT ACCOUNT BALANCE, PRIVATE DEBT AND EURO AREA SOVEREIGN DEBT CRISIS: A COMPARISON OF NORTH AND SOUTH

Isadora Lazar () and Madalina Ecaterina Andreica ()
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Isadora Lazar: Bucharest Academy of Economic Studies and Researcher at the National Scientific Research Institute for Labour and Social Protection
Madalina Ecaterina Andreica: The Bucharest Academy of Economic Studies and Researcher at the National Scientific Research Institute for Labour and Social Protection
Authors registered in the RePEc Author Service: Madalina Ecaterina Popescu

Romanian Journal of Economics, 2013, vol. 37, issue 2(46), 40-52

Abstract: The objective of this paper is to determine the difference, if any, between North and South in the Euro Area, by testing the influence of current account and private sector debt on the general government debt. We used panel data analysis for the period 2000 - 2011 and the results showed that current account and private sector debt influenced the dynamics of public debt both in Northern and Southern countries, but the dependence proved to be higher in the latter. Monte Carlo simulations were subsequently used in order to predict the variation in public debt for both Northern and Southern country groups.

Keywords: general government debt; current account; private debt; Euro Area; Monte Carlo simulation. (search for similar items in EconPapers)
JEL-codes: C23 F32 H63 (search for similar items in EconPapers)
Date: 2013
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Citations: View citations in EconPapers (1)

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Persistent link: https://EconPapers.repec.org/RePEc:ine:journl:v:2:y:2013:i:44:p:40-52

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