Sustainability of Public Debt Stock in Transition Economies in Central and Eastern Europe Countries in Terms of Solvency
Sustainability of Public Debt Stock in Transition Economies in Central and Eastern Europe Countries in Terms of Solvency
Author(s): Maciej WysockiSubject(s): National Economy, Financial Markets, Public Finances
Published by: Instytut Nauk Ekonomicznych Polskiej Akademii Nauk
Keywords: public debt sustainability; intertemporal budget constraint; time series analysis; transition economies; CEE countries
Summary/Abstract: In this article we examine the sustainability of public debt stock in terms of solvency in CEE countries using Ata Ozkaya’s Stepwise Algorithm modified by Zivot-Andrews test to establish the level of integration variables. Such an approach allows us to examine the presence of structural breaks which occurred since the global financial crisis in the fourth quarter of 2008. We find that despite temporal fiscal turbulences during the crisis, all countries of Central and Eastern Europe have stabilised their fiscal policies
Journal: Studia Ekonomiczne
- Issue Year: 2017
- Issue No: 1
- Page Range: 61-83
- Page Count: 23
- Language: English