Contents of the volume

2017, Volume 70 - Issue 4

ISSN: 2499-8265
RSS feed citation: At RePEc
Publication date: 20 October 2017

SECULAR STAGNATION: IS IT IN THE DATA?

Dimitris Kirikos

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INCOME INEQUALITY AND GROWTH: NEW INSIGHTS FROM ITALY

Bernard Njindan Iyke, Sin-Yu HO

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FOREIGN DIRECT INVESTMENTS, EXPORTS, UNEMPLOYMENT AND ECONOMIC GROWTH IN THE NEW EU MEMBERS – A PANEL DATA APPROACH

Nicholaos Dritsakis, Pavlos Stamatiou

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IS REAL DEPRECIATION OR MORE GOVERNMENT DEBT CONTRACTIONARY? THE CASE OF ROMANIA

Yu Hsing

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HEDGE FUNDS: A POLITICAL AND ECONOMIC ANALYSIS

Cameron J. Gable, Shalendra Sharma

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REASSESSING THE SUSTAINABILITY OF PUBLIC FINANCES IN POLAND: EVIDENCE FROM A MULTICOINTEGRATION APPROACH

Marco Tronzano

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THE ASSOCIATION BETWEEN INCOME INEQUALITY AND HEALTH IN ADVANCED COUNTRIES

Stephen Foreman

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Genoa Chamber of Commerce
Economia Internazionale / International Economics

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Corresponding author

Marco TRONZANO, Università degli Studi di Genova, Dipartimento di Economia e Metodi Quantitativi, Genova, Italia

Reassessing the Sustainability of Public Finances in Poland: Evidence from a Multicointegration Approach

Pages

509-526

Abstract

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.

JEL classification

C22, E62, H62

Keywords

Fiscal Sustainability, Transition Economies, Poland, Cointegration, Multicointegration

Index

  1. Introduction
  2. Multicointegration and fiscal sustainability
  3. Empirical evidence
  4. Concluding remarks

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