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Title: The relationship between debt level and fiscal sustainability in OECD countries
Author: Camarero, Mariam
Carrión i Silvestre, Josep Lluís
Tamarit, Cecilio R.
Keywords: Tipus d'interès
Integració econòmica
Models economètrics
Anàlisi de dades de panel
Organització de Cooperació i Desenvolupament Econòmic
Interest rates
Economic integration
Econometric models
Panel analysis
Organisation for Economic Co-operation and Development
Issue Date: 2013
Publisher: Universitat de Barcelona. Institut de Recerca en Economia Aplicada Regional i Pública
Series/Report no: [WP E-AQR13/07]
[WP E-IR13/15]
Abstract: In this article we unify the traditional approaches to testing for fiscal sustainability considering the stock-flow system that fiscal variables configure. Our approach encompasses previous ways of testing for sustainability. The results obtained for a group of 17 Organization for Economic Cooperation and Development -OECD- countries point to weak fiscal sustainability, as well as to the existence of cointegration between deficit and debt, confirming the relevance of the stock-flow approach. Allowing for structural breaks and multicointegration turns out to be of critical importance to assess whether the fiscal authorities apply their policies looking for sustainability and whether, simultaneously, they try to stabilize real debt target levels.
Note: Reproducció del document publicat a:
It is part of: IREA – Working Papers, 2013, IR13/15
AQR – Working Papers, 2013, AQR13/07
ISSN: 2014-1254
Appears in Collections:Documents de treball (Institut de Recerca en Economia Aplicada Regional i Pública (IREA))
AQR (Grup d’Anàlisi Quantitativa Regional) – Working Papers
Documents de treball / Informes (Econometria, Estadística i Economia Aplicada)

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