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Long-run effects of capital market integration using OLG model

Darreau, Philippe; Pigalle, François - In: Economics Bulletin 34 (2014) 3, pp. 1835-1845

Buiter (1981) illustrates that in the OLG model, the ranking of stationary utility levels under autarky and openness, is ambiguous. We show that both countries increase their stationary utility levels only if the autarky capital-labor ratios are on opposite sides of the golden rule.

Persistent link: https://www.econbiz.de/10010889802

Consolidation first - About twin deficits and the causal relation between fiscal budget and current account imbalances

Hartmann, Matthias; Herwartz, Helmut - In: Economics Bulletin 32 (2012) 4, pp. 3313-3319

During recent years, large trade- and budget deficits have accumulated especially in advanced economies. This study examines if this coincidence actually reflects a causal relation. Economic theory and previously documented findings on causality between trade and government balances are...

Persistent link: https://www.econbiz.de/10011278568

A Note on the Weak Condition of “Globally” Ricardian

Hiraga, Kazuki - In: Economics Bulletin 33 (2013) 1, pp. 361-371

debt in the sense that it binds intertemporal government budget constraint. And we compare our result with the former paper … about testing the government debt sustainability. As a result, we declare that all of these papers are sufficient condition …

Persistent link: https://www.econbiz.de/10011278601

Fiscal Policy, Consumption and Current Account in the European Countries

Magazzino, Cosimo - In: Economics Bulletin 32 (2012) 2, pp. 1330-1344

This paper explores the relationship between fiscal deficit, trade deficit and private consumption in European countries in the years 1970-2010. The aim of the study is to test empirically the validity and rationale of the Keynesian proposition (conventional view or Twin Deficits hypothesis) and...

Persistent link: https://www.econbiz.de/10011278649

Debt and growth: Is there a non-monotonic relation?

Greiner, Alfred - In: Economics Bulletin 33 (2013) 1, pp. 340-347

In this note we theoretically investigate the question of whether the relationship between public debt and economic …-Westphal et al. (2012) who present an endogenous growth model with public capital and public debt that displays a hump …-shaped relation between debt and economic growth. We highlight the mechanism that generates this outcome and we generalize their model …

Persistent link: https://www.econbiz.de/10011278717

The Nexus between Disaggregated Public Spending and GDP in the Euro Area

Magazzino, Cosimo - In: Economics Bulletin 32 (2012) 3, pp. 2560-2579

This paper aims to analyze the nexus between disaggregated public spending and GDP in the Euro Area for the period 1990-2010 at a disaggregated level, using a time series approach. We estimated this nexus for ten items of public spending according to the COFOG functional classification. Taking...

Persistent link: https://www.econbiz.de/10011278750

Debt Sustainability in India: Empirical Evidence Estimating Time-Varying Parameters

Tiwari, Aviral Kumar - In: Economics Bulletin 32 (2012) 2, pp. 1133-1141

sustainability of public debt in the case of India. Their approach was based on the framework of Bohn (1998) who showed how the … primary surplus reacts to variations in debt and which has received great attention in economics literature recently. In this …. We did not find the clear-cut result on the sustainability of public debt for the India during study period. …

Persistent link: https://www.econbiz.de/10011278786

The five little PIIGS and the big bad Troika

Katos, Anastasios V.; Katsouli, Eleni F. - In: Economics Bulletin 32 (2012) 1, pp. 1001-1007

The purpose of this paper is to investigate whether efforts to eliminate the budget deficits in Portugal, Ireland, Italy, Greece and Spain, as it has been suggested by Troika (European Commission, International Monetary Fund, and European Central Bank), will delay the economic growth of these...

Persistent link: https://www.econbiz.de/10011278795

Sustainability of public debt: Some theoretical considerations

Greiner, Alfred - In: Economics Bulletin 31 (2011) 4, pp. 3311-3319

This paper elaborates on the relationship between sustainability of public debt and the debt to GDP ratio in case the … interest rate on public debt exceeds the growth rate of GDP. When the primary surplus relative to GDP positively reacts to a … higher debt to GDP ratio, a bounded debt to GDP ratio guarantees sustainability. Further, an unbounded debt to GDP ratio is …

Persistent link: https://www.econbiz.de/10009368584

Appraising fiscal reaction functions

Afonso, António; Jalles, João - In: Economics Bulletin 31 (2011) 4, pp. 3320-3330

, implying a Ricardian fiscal regime, while primary balances have improved to reduce government debt. These results hold for the …

Persistent link: https://www.econbiz.de/10009368586