Using Panel Data to Test for Fiscal Sustainability within the European Union - 10.1628/001522109X470612 - Mohr Siebeck
Wirtschaftswissenschaft

Silika Prohl, Joakim Westerlund

Using Panel Data to Test for Fiscal Sustainability within the European Union

Rubrik: Articles
FinanzArchiv (FA)

Jahrgang 65 () / Heft 2, S. 246-269 (24)

24,00 € inkl. gesetzl. MwSt.
Artikel PDF
Most empirical evidence suggests that the sustainability hypothesis, stating that government revenues and expenditures should cointegrate with a unit slope on expenditures, does not hold within the European Union, a finding at odds with many theoretical models. This paper argues that these results can be attributed in part to the use of inappropriate time-series techniques, and that the use of panel data can generate more accurate tests. By using newly devised panel unit-root and cointegration techniques it is shown that the sustainability hypothesis cannot be rejected when applied to a panel composed of 15 European countries between 1970 and 2004.
Personen

Silika Prohl Keine aktuellen Daten verfügbar.

Joakim Westerlund Keine aktuellen Daten verfügbar.