(Un-)Sustinability of public finances in German Laender: A panel time series approach

Heiko Burret (), Lars Feld and Ekkehard Köhler

No 15/09, Freiburg Discussion Papers on Constitutional Economics from Walter Eucken Institut e.V.

Abstract: This paper provides evidence that most German states (Laender) have unsustainable public finances by exploiting a newly compiled database covering the years 1950-2011. Although the Laender are closely intertwined we are the first to apply 'second generation' panel techniques that control for correlation among the Laender. A unique identification strategy for the selection of relevant sub-panels improves the robustness of the tests.

Keywords: Fiscal Sustainability; Federalism; Panel Cointegration; Cross Dependence (search for similar items in EconPapers)
JEL-codes: E62 H62 H72 H77 (search for similar items in EconPapers)
Date: 2015
New Economics Papers: this item is included in nep-mac
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https://www.econstor.eu/bitstream/10419/125453/1/844419079.pdf (application/pdf)

Related works:
Journal Article: (Un-)Sustainability of Public Finances in German Laender: A Panel Time Series Approach (2016)
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Persistent link: https://EconPapers.repec.org/RePEc:zbw:aluord:1509

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