In this paper we examine the sustainability of euro area public finances against the backdrop of population ageing. We … alternative indicators to quantify sustainability gaps for euro area countries. With respect to the policy implications, we assess … the appropriateness of different budgetary strategies to restore fiscal sustainability taking into account …

We apply non-linear error-correction models to the empirical testing of the sustainability of the government … tax rate adjusts faster the farther away it is from the equilibrium. -- intertemporal budget constraint ; sustainability …