Government Debt and Economic Freedom in the CEE countries. Less is More
Petru-Ovidiu Mura,
Liliana Eva Donath
Abstract:Government debt has increased not only in times of economic stress, but it has become a common manifestation of government expenditure funding. The aim of the paper is to inspect the effect of government debt on economic freedom in ten CEE countries between 1995 and 2020 using a panel model approach. Selected quantitative and qualitative variables were examined to validate the hypothesis, including public governance indicators, besides the economic ones. Based on a robust panel setting, we conclude that govern… Show more
“…Mura & Donath believed that local governments can be divided into broad and narrow definitions. The broad local government is opposed to government that directly governs a region and its residents, that is, the grass-roots government, and the intermediate government, that is, the regional government, is in between (Mura & Donath, 2023).…”
How to correctly understand the existence of local government debt, study its risk classification and impact, give full play to the “dual nature” of debt with a full-caliber indicator system, and avoid debt risks to the greatest extent. That is the research direction of this article. In order to improve the accuracy and efficiency of risk assessment and effectively reduce the debt risk of government platform companies, a risk assessment method based on optimized back-propagation (BP) neural network is proposed. First, the method uses quantum genetic algorithm (quantum genetic algorithm, QGA) to adjust and determine the initial weight and threshold of BP neural network and realize the optimization of BP neural network model parameter setting. Then, the QGA-BP debt risk assessment of government platforms is verified that it performs well in the debt risk prediction of government platform companies, and its prediction accuracy and prediction speed are improved.
“…Mura & Donath believed that local governments can be divided into broad and narrow definitions. The broad local government is opposed to government that directly governs a region and its residents, that is, the grass-roots government, and the intermediate government, that is, the regional government, is in between (Mura & Donath, 2023).…”
How to correctly understand the existence of local government debt, study its risk classification and impact, give full play to the “dual nature” of debt with a full-caliber indicator system, and avoid debt risks to the greatest extent. That is the research direction of this article. In order to improve the accuracy and efficiency of risk assessment and effectively reduce the debt risk of government platform companies, a risk assessment method based on optimized back-propagation (BP) neural network is proposed. First, the method uses quantum genetic algorithm (quantum genetic algorithm, QGA) to adjust and determine the initial weight and threshold of BP neural network and realize the optimization of BP neural network model parameter setting. Then, the QGA-BP debt risk assessment of government platforms is verified that it performs well in the debt risk prediction of government platform companies, and its prediction accuracy and prediction speed are improved.
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