Please use this identifier to cite or link to this item:
|Title:||Debt sustainability, structural breaks and non-linear fiscal adjustment: A testing application to Greek fiscal policy|
|Keywords:||Public debt; fiscal policy; sustainability; non-linear; structural breaks|
|Citation:||Economics and Finance Discussion Paper, Brunel University, 04-01.|
|Abstract:||Non-linear public debt adjustment and structural breaks in fiscal policy may affect tests of public debt sustainability. Existing studies address these issues separately. No study has considered both. We address this gap by focusing on Greece, one of the most highly-indebted EMU countries. We find evidence of previously undetected non-linear fiscal adjustment; and two structural breaks in fiscal policy. Excluding these from the analysis, or allowing for non-linearities only, affects the nature of the empirical findings. Accounting for both, we find Greek public debt to be sustainable. This is in contrast to the findings of previous studies on Greece.|
|Appears in Collections:||Economics and Finance|
Dept of Economics and Finance Research Papers
Items in BURA are protected by copyright, with all rights reserved, unless otherwise indicated.