New evidence on the remedies of the Greek sovereign debt problem

Nicholas Apergis () and Arusha Cooray

LSE Research Online Documents on Economics from London School of Economics and Political Science, LSE Library

Abstract: The goal of the present paper is to investigate not only the dynamics of the Greek public debt, but also what are the appropriate measures required for achieving fiscal consolidation. The empirical estimation is carried out using a macroeconomic dataset spanning the period 1980-2008 and both the 3SLS methodological approach on a theoretical model and the structural VAR methodology to perform forecast tests and to calibrate the future paths of the public debt variable up to 2020. The results suggest that only an aggressive growth policy could permit the country to achieve debt sustainability. The results are expected to have important implications to policy makers for designing effective macroeconomic policy in terms of achieving sustainable levels of public debt.

Keywords: primary balance; public debt; structural modeling; Greece (search for similar items in EconPapers)
JEL-codes: C30 C51 E27 E62 (search for similar items in EconPapers)
Pages: 36 pages
Date: 2013-11
References: Add references at CitEc
Citations: View citations in EconPapers (16)

Downloads: (external link)
http://eprints.lse.ac.uk/55266/ Open access version. (application/pdf)

Related works:
Working Paper: New Evidence on the Remedies of the Greek Sovereign Debt Problem (2013)
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:ehl:lserod:55266

Access Statistics for this paper

More papers in LSE Research Online Documents on Economics from London School of Economics and Political Science, LSE Library LSE Library Portugal Street London, WC2A 2HD, U.K.. Contact information at EDIRC.
Bibliographic data for series maintained by LSERO Manager ().