We apply non-linear error-correction models to the empirical testing of the sustainability of the government …'s intertemporal budget constraint. Our empirical analysis, based on Italy, shows that the Italian government is meeting its … tax rate adjusts faster the farther away it is from the equilibrium. -- intertemporal budget constraint ; sustainability …

. - Expenditure policies ; public debt ; expenditure rules ; sustainability ; fiscal stance …

the time series approach (Trehan and Walsh, 1988). In this paper we analyze the sustainability of public debt in Italy …The recent fears of a sovereign debt crisis have spurred interest in the sustainability of public debt. There are two … different approaches to the assessment of sustainability: the use of sustainability gap indicators (Blanchard et al., 1990) and …

We assess the sustainability of the public finances of Greece, Ireland, Italy, Portugal and Spain (GIIPS), allowing for … sustainability when debt gets "too high" relative to a threshold which is not necessarily fixed but varies with the level of debt … effects from one Eurozone country to another. -- debt sustainability ; financial crisis …