Theoretical and Applied Economics
No. 3 / 2016 (608), Autumn
Which country after Greece? Sustainability of budget deficits in selected EU countries: A panel cointegration analysis with multiple structural breaks under cross-section dependence
Adnan Menderes University, Turkey
Mehmet MERCAN
Adnan Menderes University, Turkey
Abstract. The sustainability of budget deficits is one of the most important macroeconomic problems in countries. High public spending and insufficiency of public revenue are the main reasons for the collapsing of Greek, Italy, Spain, Portugal and Ireland economies. In this study, the sustainability of budget deficit has been examined for 17 EU countries by means of panel cointegration with multiple structural breaks under cross-section dependence, for the period of 1996-2012. At the end of the analysis; cross-section dependence was determined in these countries. Therefore, an economic shock that comes to one of these countries also affects the others. According to the long-run analysis, budget deficits of these countries are sustainable in weak form.
Contents
RASDAQ: The final curtain
The relationship between public expenditure and economic growth in Romania: Does it obey Wagner’s or Keynes’s Law?
Cracks in BRICs: A sectoral financial balances analysis and implications for macroeconomic policy
An empirical study of factors influencing total unemployment rate in comparison to youth unemployment rate in selected EU member-states
Is real depreciation expansionary? The case of the Czech Republic
Determinants of sovereign bond yields in emerging economies: Some panel inferences
Investment funds and portfolio of loan guarantees as financial steps proposals to support innovative Small and Medium Enterprises
Dynamic relationship among foreign direct investments, human capital, economic freedom and economic growth: Evidence from panel cointegration and panel causality analysis
Integrating the issue of infrastructural investment with economic growth: The case of India
Globalization of the corruption phenomenon – human capital gone wild
Productivity spillovers from FDI in Turkey: Evidence from quantile regressions
Predicting probability of default of Indian companies: A market based approach
Which country after Greece? Sustainability of budget deficits in selected EU countries: A panel cointegration analysis with multiple structural breaks under cross-section dependence
Statistical-econometric model used to analyze the operational and insolvency risks
Short and long term analysis of some factors effecting youth unemployment in Turkey
Determining the causal relationships among entrepreneurship, educational attainment and per capita GDP in high-income OECD countries
Assessment of the bankruptcy risk based on the solvency ratio
Using simulation and modeling to improve career management processes in organizations
Commodity market integration and price transmission: Empirical evidence from India
Testing the relationship between military spending and private investments: Evidence from Turkey
Growth-finance nexus: Empirical evidence from India
The importance and role of small and medium-sized businesses
Skill biased technological changes: Case of the MENA Region
Net earnings trends in the EU countries
Communication and PR in crisis situations