TY  - GEN
AB  - This paper studies for the two major Iberian economies, Portugal and Spain,
whether they pursue sustainable debt policies based on Bohn (1998)'s idea of a
fiscal response mechanism. After presentation and discussion of theoretical reflections
on the governmental budget, the empirical estimations are implemented with
splines. By accounting for time-varying coefficients it is possible to detect how the
fiscal response has been modified or developed over time. The outcome indicates
sustainable fiscal behavior based on past observations of about the last 30 years
for Portugal and Spain. However, the administration's response to increasing debt
ratios has weakened over the years in Portugal and, recently, also in Spain.
DA  - 2013
DO  - 10.4119/unibi/2903017
KW  - Public debt
KW  - Fiscal Sustainability
KW  - Time-Varying Parameters
LA  - eng
PY  - 2013
SN  - 2196-2723
SP  - 18-
TI  - Sustainable Debt Policies Despite the Crisis? Empirical Evidence for Iberian Economies
UR  - https://nbn-resolving.org/urn:nbn:de:0070-pub-29030172
Y2  - 2024-11-22T11:11:26
ER  -