While there is ample evidence on the linkage between public debt and economic growth for national economies, far fewer investigations have been carried out at the subnational level. In this paper, we therefore study the long- and short-term relationship between regional public debt intensities...

Can the evolution of public debt be predicted from its determinants? While the recovery programs undertaken during the 2008 crisis have led to a big takeoff in public debt ratios, the factors likely to curb its upward spiraling dynamic are subject to considerable uncertainty and fuel debate...

In this paper, we describe key problems of the current EU's fiscal framework and offer constructive alternatives to reforming it. A comprehensive reassessment of the rules is necessary, as the development of the rules has reached an impasse for both political and technical reasons. In our view,...

Ever since the financial and economic crisis of 2008/2009, public debt in almost all OECD countries has increased significantly. The European debt crisis has further intensified over the past few weeks. Private households with high levels of wealth and income could be enlisted to help with...

This paper discusses the problem of public debt in the long run. The working premise is that debt has negative effects on growth, mainly because it stimulates consumption spending that ultimately crowds out capital accumulation. Since this is a controversial viewpoint among Keynesian economists,...

This study employs a panel data analysis to examine the relationship between fiscal illusion and budget policy of 15 African countries over the period between 1980 and 2012. The empirical results of the test of Hausman suggest the use of fixed effects estimators. But to check the robustness of...

This study employs a panel data analysis to examine the relationship between fiscal illusion and budget policy of 15 African countries over the period between 1980 and 2012. The empirical results of the test of Hausman suggest the use of fixed effects estimators. But to check the robustness of...

Lack of coordination between the monetary and fiscal authorities will result in inferior overall economic performance. This paper studies the interactions between monetary and fiscal policies and its effect on the economic performance by using al cointegration tests in the case of Euro Area....