The Sustainability of Italian Public Debt and Deficit

被引：13

作者：

Brady G.L. ^{[1
]}

Magazzino C. ^{[2
]}

机构：

[1] Department of Economics, Bryan School of Business and Economics, University of North Carolina, Greensboro, NC

[2] Department of Political Sciences, Roma Tre University, Rome

来源：

International Advances in Economic Research | 2017年 / 23卷 / 1期

关键词：

Italy; Public debt; Public deficit; Sustainability; Time series;

D O I：

10.1007/s11294-016-9623-7

中图分类号：

学科分类号：

摘要：

In this paper, we analyse the sustainability of Italian public debt using a unique database, reconstructed by Forte (2011), which covers the years 1862–2013. The study focuses on empirical tests for the sustainability and solvency of Italian public finance. The results of unit root and stationarity tests show that public debt and deficit variables are non-stationary at levels, but stationary in first-differences form, or I(1). However, some breaks in the series emerge, given internal and external crises (wars, oil shocks, regime changes, institutional reforms). Therefore, the empirical analysis is conducted for the entire period, as well as two sub-periods (1862–1913 and 1947–2013). In essence, the paper’s results reveal that Italy has sustainability problems in the Republican age (1947-2013). Our Markov-switching dynamic regression model indicates the existence of two distinct states, both for public debt and deficit, with means and standard deviations rather different. Both states are extremely persistent. © 2017, International Atlantic Economic Society.

引用

页码：9 / 20

页数：11

共 38 条

[1]

Afonso A., Fiscal sustainability: the unpleasant European case, FinanzArchiv, 61, 1, pp. 19-44, (2005)

[2]

Alesina A., Ardagna S., Fiscal adjustments – why they can be expansionary?, Economic Policy, 13, (1998)

[3]

Alesina A., Ardagna S., Large changes in fiscal policy: taxes versus spending, NBER Working Paper, (2009)

[4]

Baglioni A., Cherubini U., Intertemporal budget constraint and public debt sus-tainability: the case of Italy, Applied Economics, 25, pp. 275-283, (1993)

[5]

Balassone F., Francese M., Pace A., Public debt and economic growth in Italy, Quaderni di Storia Economica–Bank of Italy, (2011)

[6]

Baum A., Checherita-Westphal C., Rother P., Debt and growth: new evidence for the euro area, Journal of International Money and Finance, 32, pp. 809-821, (2013)

[7]

Biggs A., Hassett K., Jensen M., A guide for deficit reduction in the United States based on historical consolidations that worked, AEI Economic Policy Working Paper, pp. 2004-2010, (2010)

[8]

Bravo A.B.S., Silvestre A.L., Intertemporal sustainability of fiscal policies: some tests for European countries, European Journal of Political Economy, 18, pp. 517-528, (2002)

[9]

Buiatti C., Carmeci G., Mauro L., The origins of the public debt of Italy: geographically dispersed interests?, Journal of Policy Modelling, 36, pp. 43-62, (2014)

[10]

Burret H.T., Feld L.P., Kohler E.A., Sustainability of German fiscal policy and public debt: historical and time series evidence for the period 1850–2010, CESifo Working Paper, (2013)

← 1 2 3 4 →