2017, Volume 70 - Issue 4
RSS feed citation: At RePEc
Publication date: 20 October 2017
INCOME INEQUALITY AND GROWTH: NEW INSIGHTS FROM ITALYRead the article
FOREIGN DIRECT INVESTMENTS, EXPORTS, UNEMPLOYMENT AND ECONOMIC GROWTH IN THE NEW EU MEMBERS – A PANEL DATA APPROACHRead the article
IS REAL DEPRECIATION OR MORE GOVERNMENT DEBT CONTRACTIONARY? THE CASE OF ROMANIARead the article
REASSESSING THE SUSTAINABILITY OF PUBLIC FINANCES IN POLAND: EVIDENCE FROM A MULTICOINTEGRATION APPROACHRead the article
Marco TRONZANO, Università degli Studi di Genova, Dipartimento di Economia e Metodi Quantitativi, Genova, Italia
This paper extends the analysis carried out in Tronzano (2017) reassessing the sustainability of Poland’s public finances in a stochastic environment. A single-step multicointegration test detects the existence of first-order cointegration between revenues and expenditures flows. However, these fiscal variables are not multicointegrated, thus violating a crucial condition for fiscal sustainability in a stochastic environment. Overall, this empirical evidence supports the policy implications outlined in Tronzano (2017) (further fiscal consolidation and a more balanced fiscal-mix between revenues and expenditures). A further implication is that the above guidelines should be implemented introducing a systematic policy reaction to contingent disequilibria in public debt.
C22, E62, H62
Fiscal Sustainability, Transition Economies, Poland, Cointegration, Multicointegration
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