Theoretical and Applied Economics
No. 1 / 2015 (602), Spring
The measurement of fiscal behavior in some European countries: Panel data perspective
Aksaray University, Aksaray, Turkey
Aviral Kumar TIWARI
IBS/IFHE Hyderabad, India
Abstract. This paper tests for budget balance of 12 European countries over the period 1999:1-2013:2 by the Sequential Panel Selection Method (SPSM) developed by Chortareas and Kapetanios (2009) using the Panel KSS test with a Fourier function. This article analyses both Kapetanios et al. (2003, hereafter, KSS) without Fourier and KSS with Fourier function. SPSM method tests for unit root that jointly consider structural breaks and nonlinear adjustment. It is applied to the data on 12 European countries and we classify the whole panel into a group of stationary and nonstationary series. In doing so, we can clearly determine which series in the panel are stationary process. We reported the results of the Panel KSS test with a Fourier function and found that the budget balance in 7 countries are stationary and this result is in accord with intertemporal budget constraint. Other hand, budget balance in five countries, namely Finland, United Kingdom, Sweden, Portugal and Latvia has in violation of their intertemporal budget constraint.
Contents
The credit impact on the economic growth
Predicting balance of payments crises for some emerging economies
Creativity and innovation – Sources of competitive advantage in the value chain of tourism enterprises
How to escape the middle income trap: international evidence from a binary dependent variable model
Land value dynamics with endogenous human and physical capital accumulation
Environmental Kuznets curve. Evidence from Romania
Effects of economic crisis on the distribution of earnings from Romania
An approach of social policy in terms of macro-stabilisation function
Economy recovery risks which Romanian companies has to cope with
The measurement of fiscal behavior in some European countries: Panel data perspective
Romanian municipal bond market at Bucharest Stock Exchange: further investigations
Inequality and economic growth: theoretical and operational approach
Measuring financial development in India: A PCA approach
Welfare costs due to economic fluctuations according to different model setups
The role of rating agencies in international financial market
Socioeconomic development index ranking calculations of cities with fuzzy clustering method: case of Turkey
Fiscal transparency in the European Union
Epistemic transfers in economics from social sciences
Accelerating the development of learning organizations: Shifting paradigms from current practice to human performance improvement
Transferring business intelligence and big data analysis from corporations to governments as a hybrid leading indicator
The impact of cultural and educational accumulations on entrepreneurial behaviour. Main issues encountered in theoretical approaches
Models for evaluating financial crisis – what went wrong for developed and emerging economies?
Impact of financial crisis on the decision making process for insurance consumers
Beyond the implementation of a dynamic stochastic general equilibrium model
How the legislation influenced the M&A transactions in Romania