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dc.contributor.advisorAguirre Osa, Idoia
dc.contributor.advisorVázquez Pérez, Jesús ORCID
dc.contributor.authorBahadir Karaca, Bayram
dc.descriptionMaster in Economics: Empirical Applications and Policies. Academic Year: 2019-2020es_ES
dc.description.abstractThis paper empirically analyzes fiscal policy sustainability and the cyclicality in 19 Euro Area countries using data on government debt, primary deficit and the output gap. We investigate this over quarterly intervals, which begin in 1980:1 and end in 2019:3. We find that primary deficit/GDP ratio responds negatively to an increase in government debt in weak economic times, which we interpret as sustainable fiscal policy in the economic times of distress. The best fitting threshold model and the Markov switching model do not support fiscal policy sustainability during economic expansions. Hence, we interpret the robust sustainable results during times of distress as evidence that policy makers are concerned with the fiscal rules and targets in weak economic times. Regarding the cyclicality of fiscal policy, we find symmetric and counter-cyclical behavior for Markov switching model.es_ES
dc.subjectfiscal policy sustainabilityes_ES
dc.subjectfiscal policy asymmetryes_ES
dc.subjectMarkov switching modelses_ES
dc.subjectthreshold regression modelses_ES
dc.titleFiscal policy asymmetries and the sustainability of government debt in the Euro Areaes_ES
dc.rights.holderAtribución-NoComercial-SinDerivadas (cc by-nc-nd)
dc.departamentoesFundamentos del análisis económico IIes_ES
dc.departamentoeuEkonomia analisiaren oinarriak IIes_ES

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Atribución-NoComercial-SinDerivadas (cc by-nc-nd)
Except where otherwise noted, this item's license is described as Atribución-NoComercial-SinDerivadas (cc by-nc-nd)