In 2001, Chile was one of the first countries in the world to adopt a structural balance fiscal rule. This paper provides the foundations of the choice of the rule, its methodological design and its initial estimates for the period 1987-2000. The paper also includes a discussion about the use of...

The study of the link between debt and growth has been full of debates, both in theory and empirics. However, there is a growing consensus that the relationship is sensitive to the level of debt. Our paper tries to address the question of non linearity in the long term relationship between...

Public debt in the OECD area passed annual GDP in 2011 and is still rising. For many countries, just stabilising debt - let alone bringing it down to a more sustainable level - is a major challenge. The debt overhangs can affect growth through channels such as raising the cost of capital. The...

The convergence criteria group together those macro variables whose dimensions mean to put in good use, to potentiate and to strengthen the major benefits of integration, as their configuration, either before and especially after the adhesion in EU, represents strict and compulsory requirements...

In this paper we evaluate the fiscal sustainability of the Dominican Republic using the recursive algorithm proposed by Croce and Juan-Ramón (2003). The results indicate that the Dominican economy shows an unsustainable fiscal position in much of the period, but for the years 2014-2016 would be...

The convergence criterions nessesary for the entrance of EU-member to European Monetary Union are divided to monetary and fiscal area. To fiscal criterions (after Pact of Stability and Growth) belong the low long-run deficit of public budget in the maximum 3 % of GDP and maximal public debt 60 %...

This paper empirically analyzes the impact of budget deficit on the economic development of Romania. Using the OLS estimates for quarterly series for the period from 2001 to 2011, the results of the estimates prove that there is an indirect relationship between budget deficit and economic growth...

This paper investigates the relationship between public capital expenditure and public debt in the European Union (EU) on a panel of fifteen countries over the sample period 1980-2013. We find robust evidence of a negative cointegrating relation, according to which increases in the capital...

Fiscal policy was key determinant of macroeconomic behavior during the 80s, however it is necessary to distinguish the effects of shocks over fiscal policy from those resulting of policy decisions. For that purpose the study uses, with an adjustment, the methodology developed by Marshall and...

This paper discusses the development of public expenditure in the Netherlands since 1850. Why did public expenditure increase from 14% GDP in 1850, nearly 20% in 1921, 30% GDP in 1950 and over 60% GDP in 1983? Dutch public expenditure has fallen to less than 50% GDP in 2003. Why did this...