Register  |  Login  |  Inquiries  |  Sitemap
Advanced Search
Journal of Economic Integration 2007 March;22(1) :112-127.
DOI: https://doi.org/10.11130/jei.2007.22.1.112
Sustainability of EU Fiscal Policies: a Panel Test
Peter Claeys 
European University Institute, Universitat de Barcelona and SHERPPA
Copyright ©2007 Journal of Economic Integration
ABSTRACT

The fiscal policy rule implicit in the Stability and Growth Pact, has been rationalised as a way to ensure that national fiscal policies remain sustainable within the EU, thereby endorsing the independence of the ECB. We empirically examine the sustainability of European fiscal policies over the period 1970-2001. The intertemporal government budget constraint provides a test based on the cointegration relation between government revenues, expenditures and interest payments. Sustainability is analysed at both the national level and for a European panel. Results show that European fiscal policy has been sustainable overall, yet national experiences differ considerably.

JEL classification:E61, E63, H63

Keywords: Fiscal policy | Debt sustainability | Panel unit root test | Panel cointegration test | EMU
TOOLS
PDF Links  PDF Links
Full text via DOI  Full text via DOI
Download Citation  Download Citation
Supplement  Supplement
  E-Mail
Share:      
METRICS
0
Crossref
0
Scopus
946
View
5
Download
Dynamic Fiscal Policies and Endogenous Growth  2005 June;20(2)
Editorial Office
Center for Economic Integration, Sejong Institution, Sejong University, 209, Neungdong-Ro, Gwangjin-Gu,
Seoul, 05006, Korea
TEL : +82-2-3408-3338    FAX : +82-2-3408-3338   E-mail : jei@sejong.ac.kr
Browse Articles |  Current Issue |  For Authors and Reviewers |  About
Copyright© by Center for Economic Integration. All right reserved.