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Working paper

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2007

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cc-by-nc-nd, (c) Claeys, 2007
Please use this identifier to cite or link to this item: https://hdl.handle.net/2445/63544

Sustainability of EU fiscal policies. A panel test

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Abstract

The fiscal policy rule implicit in the Stability and Growth Pact, has been rationalised as a way to ensure that national fiscal policies remain sustainable within the EU, thereby endorsing the independence of the ECB. We empirically examine the sustainability of European fiscal policies over the period 1970-2001. The intertemporal government budget constraint provides a test based on the cointegration relation between government revenues, expenditures and interest payments. Sustainability is analysed at both the national level and for a European panel. Results show that European fiscal policy has been sustainable overall, yet national experiences differ considerably.

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Política fiscal, Macroeconomia, Cicle de vida del producte, Deute públic, Anàlisi d'impacte econòmic, Inversions

Subject (English)

Fiscal policy, Macroeconomics, Product life cycle, Public debt, Economic impact analysis, Investments

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Documents de treball (Institut de Recerca en Economia Aplicada Regional i Pública (IREA))

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CLAEYS, Peter. Sustainability of EU fiscal policies. A panel test. IREA – Working Papers. 2007. Vol.  IR07/02. ISSN 2014-1254. [consulted: 13 of October of 2026]. Available at: https://hdl.handle.net/2445/63544

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