İLGÜN, Miraç Fatih Erciyes Üniversitesi - İktisadi ve İdari Bilimler Fakültesi - Maliye Bölümü Mali İktisat Anabilim Dalı, Turkey

FISCAL SUSTAINABILITY: A PANEL DATA ANALYSIS FOR OECD COUNTRIES

36868

Fiscal sustainability is a multidimensional term which has effects on economic stability in the short term and on economic growth in the long term. In this study, we have examined the fiscal sustainability for selected 14 OECD countries over the period 1980-2012. For this purpose, long-term relationship has been investigated between both government spending-revenue and primary budget balance-government debt. The second generation panel unit root and cointegration methods which allows for the assumption of cross section dependency and heterogeneity were used in the analysis. The results of cointegration test with structural break indicate that both sustainability conditions are provided only in five countries in the panel, but cointegration coefficients indicate weak sustainability in these countries.

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Fiscal Sustainability , OECD countries , Panel cointegration analysis

Journal Of Economics and Administrative Sciences, Ataturk University

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