Using panel data to test for fiscal sustainability within the European Union
Data(s) |
01/06/2009
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Resumo |
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 in-appropriate 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. © 2009 Mohr Siebeck. |
Identificador | |
Idioma(s) |
eng |
Publicador |
Mohr Siebeck GmbH & Co. KG |
Relação |
http://dro.deakin.edu.au/eserv/DU:30077851/westerlund-usingpaneldata-2009.pdf http://www.jstor.org/stable/40913225 |
Direitos |
2009, Mohr Siebeck GmbH & Co. KG |
Palavras-Chave | #Fiscal sustainability #Panel cointegration #Panel unit root |
Tipo |
Journal Article |