Is the Greek budget deficit sustainable after all? Empirical evidence accounting for regime shifts

Emmanouil Trachanas and Constantinos Katrakilidis

Applied Economics, 2014, vol. 46, issue 20, 2387-2397

Abstract: This article re-examines the sustainability of the Greek budget deficit by using a formal framework based on the government's intertemporal budget constraint. The empirical analysis uses annual data from 1960 to 2011 and employs traditional as well as more recent unit root and cointegration techniques that account for linear and nonlinear effects in fiscal policy actions. Unlike previous studies, the evidence suggests that, allowing for structural breaks, the Greek budget deficit is unsustainable. The parameter after the second detected break reflects the structural deficiencies of the Greek economy.

Date: 2014
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3)

Downloads: (external link)
http://hdl.handle.net/10.1080/00036846.2014.902021 (text/html)
Access to full text is restricted to subscribers.

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:taf:applec:v:46:y:2014:i:20:p:2387-2397

Ordering information: This journal article can be ordered from
http://www.tandfonline.com/pricing/journal/RAEC20

DOI: 10.1080/00036846.2014.902021

Access Statistics for this article

Applied Economics is currently edited by Anita Phillips

More articles in Applied Economics from Taylor & Francis Journals
Bibliographic data for series maintained by Chris Longhurst ().