UTL Repository >
ISEG - Instituto Superior de Economia e Gestão / ISEG - School of Economics & Management Lisbon >
Departamento de Economia / Department of Economics >
DE - Documentos de trabalho / Working Papers >

Please use this identifier to cite or link to this item: http://hdl.handle.net/10400.5/2151

Title: 3-step analysis of public finances sustainability : the case of the European Union
Authors: Afonso, António
Rault, Christophe
Keywords: fiscal sustainability
EU
panel cointegration
Issue Date: Jun-2008
Publisher: European Central Bank
Citation: Afonso, António, Christophe Rault. 2008. "3-step analysis of public finances sustainability : the case of the European Union". European Central Bank working paper series nº 908-2008
Series/Report no.: European Central Bank working paper series;nº 908-2008
Abstract: We use a 3-step analysis to assess the sustainability of public finances in the EU27. Firstly, we perform the SURADF specific panel unit root test to investigate the mean-reverting behaviour of general government expenditure and revenue ratios. Secondly, we apply the bootstrap panel cointegration techniques that account for the time series and cross-sectional dependencies of the regression error. Thirdly, we check for a structural long-run equation between general government expenditures and revenues via SUR analysis. While results imply that public finances were not unsustainable for the EU panel, fiscal sustainability is an issue in most countries, with a below unit estimated coefficient of expenditure in the cointegration relation with revenue as the dependent variable.
URI: http://hdl.handle.net/10400.5/2151
ISSN: 1725-2806
Publisher version: http://www.ecb.int/pub/pdf/scpwps/ecbwp908.pdf
Appears in Collections:UECE - Documentos de Trabalho / UECE - Working Papers
DE - Documentos de trabalho / Working Papers

Files in This Item:

File Description SizeFormat
ecbwp908.pdf818.65 kBAdobe PDFView/Open
Statistics
FacebookTwitterDeliciousLinkedInDiggGoogle BookmarksMySpaceOrkut
Formato BibTex mendeley Endnote Logotipo do DeGóis 

Items in DSpace are protected by copyright, with all rights reserved, unless otherwise indicated.

 

 
Estamos no RCAAP Governo Português separator Ministério da Educação e Ciência   Fundação para a Ciência e a Tecnologia

Financiado por:

POS_C UE