Fincke, Bettina; Greiner, Alfred - In: International Journal of Sustainable Economy 3 (2011) 2, pp. 235-254
This paper studies whether the public debt policies of former West German states from 1975 until 2006 were sustainable. We test if the primary surplus relative to GDP is a positive function of the public debt to GDP ratio where we allow for time-varying reaction coefficients by resorting to...