Fiscal Sustainability: A Panel Assessment for Advanced Economies

Antonio Afonso and Joao Jalles

No 2015/05, Working Papers Department of Economics from ISEG - Lisbon School of Economics and Management, Department of Economics, Universidade de Lisboa

Abstract: We assess the sustainability of public finances in OECD countries using panel unit root and cointegration analyses. Results show: no cointegration (no sustainability) between revenues and expenditures; improvement of the primary balances after worsening debt ratios; causality from government debt to primary balances.

Keywords: debt; primary balance; stationarity; panel analysis; FMOLS (search for similar items in EconPapers)
JEL-codes: C33 E62 H62 H63 (search for similar items in EconPapers)
Date: 2015-03
New Economics Papers: this item is included in nep-mac
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Citations: View citations in EconPapers (21)

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Journal Article: Fiscal sustainability: a panel assessment for advanced economies (2015)
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Persistent link: https://EconPapers.repec.org/RePEc:ise:isegwp:wp052015

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