Chow, Sheung Chi (2013): The sustainability of fiscal policy: A group-mean panel estimator approach.
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Abstract
There has been a rising interest recently on studying sustainability of fiscal policy using panel data. Generally, these kinds of studies will in their last come up with a conclusion that a panel of countries have or haven’t a sustainable fiscal policy. To come up with such kind of conclusion, most of those studies implicitly assume that there is a common cointegrated relationship in government revenue and expenditure between countries in their panel data. However there is not much argument could support that necessarily those countries shares a same long run relationship. This paper employs recently developed techniques, group-mean panel estimator (include group-mean panel FMOLS and DOLS), for investigating the sustainability of fiscal policy in a panel of countries , but without assuming that there must be a common cointegrated relationship in government revenue and expenditure between countries in their panel data. To our knowledge, this is the first paper adopt a group-mean panel estimator to investigate whether countries have a sustainable fiscal policy.
Item Type: | MPRA Paper |
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Original Title: | The sustainability of fiscal policy: A group-mean panel estimator approach |
English Title: | The sustainability of fiscal policy: A group-mean panel estimator approach |
Language: | English |
Keywords: | Fiscal sustainability,Group-mean panel FMOLS, Group-mean panel DOLS. |
Subjects: | C - Mathematical and Quantitative Methods > C5 - Econometric Modeling E - Macroeconomics and Monetary Economics > E6 - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook > E62 - Fiscal Policy |
Item ID: | 57825 |
Depositing User: | Sheung Chi Chow |
Date Deposited: | 10 Aug 2014 10:05 |
Last Modified: | 26 Sep 2019 15:27 |
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URI: | https://mpra.ub.uni-muenchen.de/id/eprint/57825 |
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The sustainability of fiscal policy: A group-mean panel estimator approach. (deposited 07 Aug 2014 12:11)
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