EconPapers    
Economics at your fingertips  
 

Determinants of substantial public debt reductions in Central and Eastern European Countries

Sofia Semik () and Lilli Zimmermann ()
Additional contact information
Sofia Semik: Goethe University
Lilli Zimmermann: University of Applied Sciences

Empirica, 2022, vol. 49, issue 1, No 3, 53-70

Abstract: Abstract Government debt development is a timeless issue in economics that has gained even more attention in light of the global financial crisis and the Covid 19 pandemic crisis. The following paper uses several specifications of a logistic probability model to examine the key determinants underlying substantial public debt reductions in Central and Eastern European EU Member States for the period 1996–2020. The results suggest that fiscal adjustments are more likely to be successful in reducing public debt if they are based on expenditure cuts rather than revenue increases. In this context, cuts in social benefits and government employee compensation prove to be particularly effective. In addition, favourable economic growth rates increase the probability of a substantial reduction in government debt.

Keywords: Public debt; Fiscal policy; Central and Eastern Europe; Logistic probability model (search for similar items in EconPapers)
JEL-codes: C35 E62 H6 (search for similar items in EconPapers)
Date: 2022
References: View references in EconPapers View complete reference list from CitEc
Citations: Track citations by RSS feed

Downloads: (external link)
http://link.springer.com/10.1007/s10663-021-09529-2 Abstract (text/html)
Access to the full text of the articles in this series is restricted.

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:kap:empiri:v:49:y:2022:i:1:d:10.1007_s10663-021-09529-2

Ordering information: This journal article can be ordered from
http://www.springer. ... ration/journal/10663

DOI: 10.1007/s10663-021-09529-2

Access Statistics for this article

Empirica is currently edited by Fritz Breuss and Fritz Breuss

More articles in Empirica from Springer, Austrian Institute for Economic Research, Austrian Economic Association Contact information at EDIRC.
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().

 
Page updated 2022-05-12
Handle: RePEc:kap:empiri:v:49:y:2022:i:1:d:10.1007_s10663-021-09529-2