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Copyright of Transformations in Business & Economics is the property of Vilnius University and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

We assessed the sustainability of fiscal policy in the 28 European Union countries over the 1980-2015 years. Panel unit root tests in the presence of cross-sectional dependence showed that government revenues, expenditures, the primary balance, and debt were non-stationary series. However, cointegration tests reveled that a long-run relationship exists between government revenues and expenditures as well as between government primary deficit and debt. The results of causality tests were in line with the neutrality hypothesis: government revenues do not cause the expenditures, and vice versa. Furthermore, mixture models analyses indicated the presence of three homogeneous clusters, one of which included Portugal, Ireland, Italy, Greece, and Spain (PIIGS), whose coefficient of 0.68 indicates the absence of sustainability, since government expenditures grow faster than revenues. [ABSTRACT FROM AUTHOR]

This paper empirically investigates the short and the long run impact of public debt on economic growth. We use annual data from both the central and the peripheral countries of the euro area (EA) for the 1961-2013 period and estimate a production function augmented with a debt stock term by applying the Autoregressive Distributed Lag (ARDL) bounds testing approach. Our results suggest different patterns across the EA countries and tend to support the view that public debt always has a negative impact on the long-run performance of EA member states, whilst its short-run effect may be positive depending on the country. [ABSTRACT FROM AUTHOR]

Most studies on the relationship between public debt and economic growth implicitly assume homogeneous debt effects across their samples. We -in accordance with recent literature- challenge this view and state that there likely is a great deal of cross-country heterogeneity in that relationship. However, other than scholars assuming that all countries are different, we expect that clusters of countries differ. We identify three country clusters with distinct economic systems: Liberal (Anglo Saxon), Continental (Core EU members) and Nordic (Scandinavian). We argue that different degrees of fiscal uncertainty at comparable levels of public debt between those economic systems constitute a major source of heterogeneity in the debt-growth relationship. Our empirical evidence supports this assumption. Continental countries face more growth reducing public debt effects than especially Liberal countries. There, public debt apparently exerts neutral or even positive growth effects, while for Nordic countries a non-linear relationship is discovered, with negative debt effects kicking in at public debt values of around 60% of GDP. [ABSTRACT FROM AUTHOR]

In the paper we intend to analyze how Romania fulfills the Maastricht criteria. As a basis of assessment, we have used the convergence reports from 2014 and 2016. Our conclusion is that while most of the convergence criteria are met by Romania, the target of 2019 is inoperable and the setting of another target must take into account, in addition to the convergence criteria and financial stability, also the structural competitiveness of the Romanian economy. [ABSTRACT FROM AUTHOR]

Copyright of Financial Sciences / Nauki o Finansach is the property of Uniwersytet Ekonomiczny we Wroclawiu and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

Contracting public debt is an omnipresent process in Member emerging. Low development of production capacities compared to consumption and investment, the existence of a reduced volume of savings internally, major imbalances in external plan or fluctuations in major capital are just some elements that determine the the orientation towards borrowings, and in particular to external funding. The growth rate in recent years emphasized, representing an issue of major importance for authorities, especially considering the sustainability of government debt. This may be evidenced at least by analysis of the level registered, of cost of financing and repayment period. In the paper is performed a descriptive statistical analysis on the evolution of growth in public debt and its structure by types of currencies, being presented and the factors affecting the maintenance of public debt to a sustainable level. The conclusion of the analysis carried out highlights a rapidly growing of the public debt in Romania after 2008, which requires the application of a clear strategy for its management so as to avoid the generated risks by high levels and inadequate structure. [ABSTRACT FROM AUTHOR]

This paper contributes to empirical investigation of the causality relationships between real gross domestic product (GDP) growth and the growth of three debt categories, namely public, foreign and private debt, in the universe of the 28 European Union (EU) countries during the past decade. Using panel Granger causality estimations, we find statistically relevant bidirectional causality relationships between public debt and economic growth for the periods both before and after the outbreak of the recent financial crisis. Moreover, there is clear evidence of economic growth's contribution to decreasing public debt. [ABSTRACT FROM AUTHOR]

A global neoliberal architecture has enabled many countries to increase their public debts to meet their fiscal needs. But since 2008 a number of European and North American economies have faced financial crises induced by unsustainable debts. This paper analyses the case of post-default Argentina since 2001, so as to better comprehend the political economy of public debt, especially in cases where governments are elected on anti-austerity platforms. Presidents Néstor and Cristina Kirchner were committed to a debt-reduction policy, yet Argentina faced a new, ‘selective’, default in 2014. This paper analyses how the country has been trapped in a cycle of debt dependency, which can only be interrupted by a comprehensive audit of the debt’s legitimacy followed by debt cancellation. Critical lessons are provided for other countries facing similar situations. [ABSTRACT FROM PUBLISHER]

The main goal of the article is to test the level of fiscal (un)sustainability in the Central and Eastern EU economies, using primary deficit indicator and tax gap indicator - tools proposed and described by Buiter and Blanchard. This goal is accompanied by the following hypotheses: (1) large primary deficits recorded in the investigated economies prevent form stabilizing the public debt volume, (2) actual public revenues in those countries are too low to stabilize current public debt volume (predetermined by public spending policies). The research period covers the years 1996-2015. Data were taken from Eurostat. The results of the research confirm the hypothesis. [ABSTRACT FROM AUTHOR]

Copyright of Comparative Economic Research is the property of Wydawnictwo Uniwersytetu Lodzkiego and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

The importance of public debt level is mainly related with its impact on economic growth. We analyze the relationship between public debt and economic growth in the core and periphery European countries. We find that higher levels of debt-to-GDP ratio have a negative impact on economic growth in all countries, with Belgium and Ireland being the most affected economies in each type of countries. Moreover, we obtain that economic growth reduces debt-to-GDP ratio and, consequently, economic growth is essential to reduce public debt and improves the general economic situation. [ABSTRACT FROM AUTHOR]

In this paper we empirically study the relation between public debt and economic growth. We analyze how the public debt to GDP ratio at a certain point in time is cor- related with the GDP growth rate in the following period, where we consider a one-year time span, a three-year time interval and a five-years interval. Using panel data comprising seven developed countries from 1970-2012, we estimate a pooled regression model and a random effects model. We find some evidence for a significantly negative relation between debt and growth. Further, for most specifications this relationship does not seem to be characterized by non-linearities. [ABSTRACT FROM AUTHOR]

Copyright of Research Papers of the Wroclaw University of Economics / Prace Naukowe Uniwersytetu Ekonomicznego we Wroclawiu is the property of Uniwersytet Ekonomiczny we Wroclawiu and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

In the current troubled times for the European economies, the role of numerical fiscal rules as fiscal constraints gets more and more attention, both in scientific research and in public debate. In this regard, it was our objective to analyze the impact of the balance budget rule and its coverage degree on public debt and deficit levels in EU countries. Through our conducted analyses we observed that although a stronger rule conducts to an increase in government's debt levels, a higher degree of coverage of the rule conducts to a strong reduction in debt levels. On the other hand, a stronger rule has a positive impact on deficit levels, although a higher degree of coverage has a strong negative impact. Considering our main findings, we submit to the general point of view that constructing and imposing numerical rules as fiscal constraints is one of the most difficult tasks of policy-makers these days. [ABSTRACT FROM AUTHOR]

This article made a detailed study on the debt situation of the countries from EU and Romania default. The economic crisis which began in 2007, with major repercussions in social life, led to the inability of governments to implement their goals before the snap. Countries in Europe there were also deadlocked facing substantial budget deficits and public debt increased by default. To cover them, in a first phase, governments have opted for borrowing on domestic and foreign capital, at the expense of adopting austerity measures that aim to reduce spending and increase tax revenues in order to increase the budget purchased, which had aroused discontent among their countries citizens. Populist measures taken had the effect of economies entering a downward spiral, which eventually led to their inability to meet its obligations arising from loans, which resulted in drastic reduction in spending and increase tax burden. In this context, particulary volatile, budgets of EU countries were built by adopting austerity measures which aimed at reducing budgetary allocations. The sovereign debt crisis has led to rethinking strategies to reduce fiscal deficits and reduce arrears. [ABSTRACT FROM AUTHOR]

The main goal of the article is to investigate the level of sustainability of public fi nance in short and long run in the old EU member states. It is accompanied by the following hypotheses: (1) the old EU economies are able to generate primary fi scal surpluses and in this way they can aim to achieve sustainability of their public fi nances, (2) the last fi nancial crisis and high costs of debt service were the obstacles in aiming at the sustainability of public fi nance. Th e research method is based on the primary fi scal balances and debt service costs. Th e research period covers the years 1996-2015. Data were taken from Eurostat and the European Commission's Directorate General for Economic and Financial Aff airs. Th e outcomes of the research prove the hypotheses were correct. [ABSTRACT FROM AUTHOR]

The globalisation process and extension of the international economic area brings not only positives, but also a number of questions and issues to which governments and integration groups search solutions. Contrary to monetary policy, fiscal policy has had a limited spatial dimension so far. It is predominantly a responsibility falling on the shoulders of national governments. Fiscal policy is related to different economic, social and cultural potential or territorial and administrative arrangement of individual countries, which prevents the full implementation of unified rules, valid for whole EU to a certain extent. The paper introduces the author's view on unifying fiscal policy rules towards the European fiscal union from the perspective of the Slovak Republic. [ABSTRACT FROM AUTHOR]

The modality in which the state manages the public debt has always represented and will continue to represent a subject of real importance, and the discussions regarding the level of budget deficit, the indebtedness degree and its implications on the social wellness are representing a big actuality at national level as also at European Union level. In this paper is presented a comparative analysis between Romania and Sweden in what regards the dependence between public debt and budget deficit and its GDP, as also the real public debt's variation in time series for Romania and Sweden, in tandem with the variation in time of ARX model, highlighting the residuum. [ABSTRACT FROM AUTHOR]

The way in which the state manages the public debt has always represented and it will continue to represent a subject of real importance, and the discussions regarding the level of budget deficit, the dregree of indebtedness and its implications on the social wellness are very present at national level as also at the European Union level. In this paper it is presented the share of public debt in the Gross Domestic Product in the member countries of European Union, and, respectively, the degree of indeptedness of each member country of the European Union, at the level year of 2013. [ABSTRACT FROM AUTHOR]

This article highlights the importance of debt-related fiscal rules and derives growth-maximizing public debt ratios from a simple theoretical model. On the basis of evidence on the productivity of public capital, we estimate public debt targets that governments should maintain if they wish to maximize growth for panels of OECD, EU and euro area countries. These are not arbitrary numbers, but are founded on long-run optimizing behaviour assuming that governments implement the golden rule of financing; that is, they contract debt only to finance public investment. Our estimates suggest that the euro area should target debt levels of around 50% of GDP if member states are to have common targets. That is about 15% points lower than the estimate for the growth-maximizing debt ratio in our OECD sample and comfortably within the Stability and Growth Pact’s debt ceiling of 60% of GDP. We also indicate how forward-looking budget reaction functions fit into a debt targeting framework. [ABSTRACT FROM PUBLISHER]

Copyright of Ensayos Economicos is the property of Banco Central de la Republica Argentina and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

In this paper, we investigate the trade-off between the need for budget consolidation and the desirability of expansionary fiscal policies as a means of demand management by simulating alternative scenarios with a macroeconometric model of the Slovenian economy. The simulations show that for the Slovenian economy, an expansionary fiscal policy is neither feasible nor desirable: it leads to unsustainable government debt and has only weak effects on income and employment. It turns out that the stability program of the Slovenian government and the related policy prescriptions of the EU lead to reasonable results in terms of public debt without strong adverse effects on output or unemployment. An expansionary fiscal policy is not desirable, as it results in unsustainable public debt without enhancing employment and output sufficiently. [ABSTRACT FROM AUTHOR]

'The great European dream was to diminish militant nationalism' (Antony Beevor). The future remains open, and some degree of nationalism may be constantly present, but one thing can be expressed with confidence: the European Union has successfully averted conflict within the 'club' and has been a clearly powerful incentive for reconciliation between former enemies as well as bringing democracy in countries formerly ruled by dictatorships. The present crisis apart, the European project remains incomparable. Indeed, this presents an inescapable imperative to any notion of resistance towards the completion of the European integration project. This article focuses on the integration project of the Old Continent's southeastern corner; more specifically, it concerns how a culture-based or incited-conflict can shape a specific cultural setting and, in return, how that culture can be transformed into one of co-operation. The inquiry is placed in the context of the relationship with, and impact of, the EU, which can serve both as example and promoter of such a culture. [ABSTRACT FROM AUTHOR]

Development of crisis has led to disregard the European Union as a homogeneous area can be immune macroeconomic and financial shocks for each country. The present paper proposes to observe the effects of the economic crisis in the changing of degree of occurrence of sovereign default risk in the European Union countries. A part of the work is performed using multidimensional data analysis methods during the years 2007-2011. Also, another part of the work done panel models in the EU. Economic contagion has led to observe changes and critical observation give us information about the place of occurrence of the economic crisis in the European Union. The model of panel data was used to observed dependencies between public debt and other variables analyzed in the EU countries. The similarity of the indicators in the country led to the information of a valid econometric model point of view. [ABSTRACT FROM AUTHOR]

For most European Union countries the government expenditure exceeds government revenue which could lead in the long run to an increase in the government debt to GDP ratio. Considering the distortions generated by the financial and economic crisis, followed by the debt crisis, both local and international investors are more prudent when planning in lending money to sovereigns. The sovereign rating is probably one of the most important aspects which investors carefully analyze before they decide to purchase government bonds or Treasury bills. This paper focuses on Romania's short-run sovereign rating determinants according to the specific methodology of Romania's Export-Import Bank (EximBank). The results reveal that rating is Bb - payment difficulties and insignificant losses being possible. [ABSTRACT FROM AUTHOR]

From Ricardo and Smith the deficits were seen as the one of „the most terrible scourges which was ever invented to afflict a nation" as a system which tends to make us less thrifty, to blind us to our real situation. In the twentieth century allowing deficits regardless of their destination opened the wrong door to excessive debt and vulnerable states to the credit markets. This paper aims at showing that currently many European Member States faced not only with high deficits and high stocks of public debt, which under normal conditions could be easier managed, but with the rejection and the lower confidence of investors and financial institution, with higher burden of interests and significant loss of growth perspective. [ABSTRACT FROM AUTHOR]

This paper presents the way in which the international financial crisis has affected the EU Member States. The levels of the public debts are pointed out and also the levels of the budgetary deficit, but also the measures taken by the authorities in order to improve the economies. In consequence, the eight countries left in the Euro competition will have to reduce the budgetary deficit below 3% and to maintain it for the EU to analyse the other indicators which might lead to delays in the Europe adoption program. [ABSTRACT FROM AUTHOR]

Up until now, European fiscal discipline has been essentially assessed on the basis of the deficit rather than on the debt situations of EU countries. However, the sustainability of the public debt depends on the discrepancy between the interest rate and the growth rate of any given country. As these future economic variables are difficult to anticipate, however, the present paper proposes a more applicable rule for the deficits. Unlike what is stated in the Stability and Growth Pact, the budgetary deficits in the European Union may therefore be kept at higher levels as a country maintains a high inflation or real growth rate, and a low level of public indebtedness. [Copyright &y& Elsevier]

The public debt is comprised of all the sums borrowed by the central public authorities, regional authorities and other public entities from persons or companies, from the internal market or from abroad having a certain reimbursement date. Between member states of the EURO zone there are still important structural differences. The contributions of each sector of the economy, agriculture, industry and services, to the GDP vary widely from a country to another. The demographical differences, linked with the degree of labor involvement, cultural differences and behavior are also widely different. Thus there will be great discrepancies between the public debt of each member state, and this paper will try to present the causes and analysis the entire process from a holistic way. [ABSTRACT FROM AUTHOR]