Debt sustainability in the EU New Member States: empirical evidence from a panel of eight Central and East European countries

Llorca, Matthieu; Redžepagić, Srdjan

doi:10.1080/14631370802018882

Cited by 13 publications

(8 citation statements)

References 22 publications

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“…159-172), Stoian andCâmpeanu (2010), andStanek (2014). Llorca and Redzepagic (2008) examine panel of eight new EU Member States (including the Czech Republic, but excluding Hungary). They use data on public expenditure and revenues and on the basis of panel unit root tests and panel co-integration tests find that fiscal policy in these countries is sustainable in the long run.…”

Section: Policy Not Sustainablementioning

confidence: 99%

Fiscal sustainability in cee countries – the case of the Czech Republic, Hungary and Poland

Mackiewicz-Łyziak

2015

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The aim of the study is to assess fiscal sustainability in the Czech Republic, Hungary and Poland and to test for existence of fiscal dominance in these countries in the context of the fiscal theory of the price level. The empirical study is conducted using unit root tests and cointegration analysis with possible structural breaks. The approach is consistent with so called backward-looking approach for fiscal dominance testing proposed by Bohn (1998). The results suggest that in the Czech Republic and Poland fiscal dominance prevailed in the analyzed period, while in Hungary – monetary dominance. The result for Hungary may be caused, however, by a one-time reduction in debt resulting from changes in pension system.

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Section: Policy Not Sustainablementioning

confidence: 99%

Fiscal sustainability in cee countries – the case of the Czech Republic, Hungary and Poland

Mackiewicz-Łyziak

2015

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“…Further, we discriminate between structural and cyclical components of revenues and expenditures in order to place emphasis on the structural component. This is the novelty of this paper when contrasted with previous panel cointegration sustainability studies between revenues and expenditures, such as Westerlund and Prohl (2010), Afonso (2005), Quintos (1995), Schneider (2006), Claeys (2007) and Llorca and Redzepagic (2008). With motivations from Galí et al (2003) who posited that the component of fiscal variables whose variations do not emanate from the influence of cycles represents discretionary fiscal policy, we use fiscal variables adjusted for cyclicallity.. As opined by Blanchard (2006), structural fiscal variables provide a benchmark by which fiscal policy can be judged.…”

Section: Introductionmentioning

confidence: 96%

“…Their results indicated that the fiscal stance of selected CEEC countries is jointly sustainable. Similarly, Llorca and Redzepagic (2008) assessed the sustainability of fiscal policy for eight CEEC countries using panel cointegration analysis and found out these countries pursued sustainable fiscal policies for period 1999-2006 using quarterly data. Boekemeier and Stoian (2018) also investigated debt sustainability in 10 CEEC countries using estimates of a fiscal reaction function in its cubic form over the period 1998-2015.…”

Section: Introductionmentioning

confidence: 99%

“…Crosssectional dependence affects the size properties of the unit root test and hence renders inferences incredible. 5 Hence, this study adopts the so-called 'second generational' econometric procedure which accounts for both cross-sectional dependence and structural breaks simultaneously in the data generating process, unlike other previous panel studies such as Beqiraj, Fedeli and Forte (2018), Claeys (2007) and Llorca and Redzepagic (2008).…”

Section: Introductionmentioning

confidence: 99%

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Fiscal Sustainability Hypothesis Test in Central and Eastern Europe: A Panel Data Perspective

Owusu¹

2021

Central European Economic Journal

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This paper assesses the fiscal sustainability hypothesis for 10 Central and Eastern European countries (CEEC) between 1997 and 2019. The study adopts very recent panel econometric techniques which accounts for issues of structural breaks and cross-sectional dependence in the data generating process to examine the cointegration between government revenue and expenditures. Preliminary results show that revenues and expenditures do not have a long-run relationship and hence a rejection of the sustainability hypothesis. As a next step, we discriminate between structural and cyclical components of revenues and expenditures in order to place emphasis on the structural component. We argue that the structural component of fiscal variables represents the actual long term behaviour of the policymaker. Further results indicate that structural revenues and expenditures have a long-run relationship however with a slope coefficient less than unity which implies sustainability in the weaker sense. At that point, expenditures exceed revenues and if this continues for a long time the government may find it difficult to market its debts in the long run. This result suggests that the fiscal authorities in CEEC must therefore do more by taking long term actions to counteract the rising fiscal deficit problems.

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“…Sustainable development in the context of various transformation and transition processes in general could be defined as an especially perspective area and as the main direction of the research on sustainable development (Zavadskas 2008;Dzemydiene 2008;Grundey 2008cGrundey , 2009McNally 1999;Melnikas 1990Melnikas , 2002Munasinghe et al 2001;Perraton 2001;Redding and Venables 2004). The problems and processes of the sustainable development in the transition countries in general , as well as in the Eastern and Central European countries could be defined as an important research area too (Brauers et al 2007;Cohendet and Stojak 2005;Dicken 1998;Goeransson and Soederberg 2005;Hayo and Seifert 2003;Krupka 2007;Lasas 2004;Llorca and Redzepagic 2008;Melnikas 1997Melnikas , 1999Melnikas , 2002Melnikas , 2008aMelnikas and Reichelt 2004;Mzavanadze 2009).…”

Section: Sustainable Development and Creation Of The Knowledge Based mentioning

confidence: 99%

Sustainable Development and Creation of the Knowledge Economy: The New Theoretical Approach / Darni Plėtra Ir Žinių Ekonomikos Kūrimas: Naujas Teorinis Požiūris

Melnikas

2010

Technological and Economic Development of Economy

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Abstract.The new theoretical approach of the processes of creating knowledge based society and the knowledge economy, as well as sustainable development processes is described in the article. The main idea is that the creation and development processes of the knowledge-based society and knowledge economy may be attributed to the category of global transformation and sustainable development processes, therefore, all general phenomena and characteristics of global transformations and sustainable development in general, are absolutely typical for the creation and development of the knowledge based society and knowledge economy. The processes of the creating of knowledge based society and knowledge economy and modernization are analyzed in the general context of the processes of sustainable development. The main principles of creating the knowledge based society and knowledge economy and modernization are described. Creating and modernization of the knowledge based society and knowledge economy are very complicated processes, oriented to the formation of the new quality of society and qualitatively new lifestyle, these processes may be described as "twice" as complicated, because they win distinction by orientations to the pursuit of new quality in two aspects: the knowledge based society and knowledge economy, compared to "traditional" society and economy, are in all cases described as qualitatively new, creating and development of the knowledge based society and knowledge economy takes place under the conditions of the global changes, which means that qualitative changes take place in all global space, the essence of those changes is the creation and spread of the knowledge-based society and knowledge economy. A special attention is given to the conclusion that in the environment of the knowledge based society creation and generating knowledge economy and development, the provisions for sustainable development should be attained. The processes of creating knowledge based society and knowledge economy and further development should be analyzed and assessed in the context of processes of globalization and internationalization, as well as processes of global transformations.The "Power" concept intended for the scientific cognition of sustainable development and knowledge based society and knowledge economy creation processes phenomena is analyzed.

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Debt sustainability in the EU New Member States: empirical evidence from a panel of eight Central and East European countries

Cited by 13 publications

References 22 publications

Fiscal sustainability in cee countries – the case of the Czech Republic, Hungary and Poland

Fiscal sustainability in cee countries – the case of the Czech Republic, Hungary and Poland

Fiscal Sustainability Hypothesis Test in Central and Eastern Europe: A Panel Data Perspective

Sustainable Development and Creation of the Knowledge Economy: The New Theoretical Approach / Darni Plėtra Ir Žinių Ekonomikos Kūrimas: Naujas Teorinis Požiūris

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