Debt Sustainability and Financial Crises: Evidence from the GIIPS

Gabriella Legrenzi () and Costas Milas

Working Paper series from Rimini Centre for Economic Analysis

Abstract: We assess the sustainability of the public finances of Greece, Ireland, Italy, Portugal and Spain (GIIPS), allowing for possible non-linearities in the form of threshold behaviour of the fiscal authorities. We provide some evidence of fiscal sustainability when debt gets "too high" relative to a threshold which is not necessarily fixed but varies with the level of debt relative to its recent history and/or the occurrence of a financial crisis.

Keywords: debt sustainability; financial crisis (search for similar items in EconPapers)
JEL-codes: C20 C50 H30 H50 (search for similar items in EconPapers)
Date: 2011-09
New Economics Papers: this item is included in nep-eec
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Citations: View citations in EconPapers (5)

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http://www.rcea.org/RePEc/pdf/wp42_11.pdf (application/pdf)

Related works:
Working Paper: Debt Sustainability and Financial Crises: Evidence from the GIIPS (2011)
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Persistent link: https://EconPapers.repec.org/RePEc:rim:rimwps:42_11

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