On the Objective of Sound Public Finance in Eurozone

Name: On the Objective of Sound Public Finance in Eurozone
Brand: Vita e Pensiero
Price: 6.00 EUR
Availability: OnlineOnly

digital

Article

Magazine

RIVISTA INTERNAZIONALE DI SCIENZE SOCIALI

Issue

RIVISTA INTERNAZIONALE DI SCIENZE SOCIALI - 2015 - 2

Title

On the Objective of Sound Public Finance in Eurozone

Authors

Mariangela Bonasia, Rosaria Rita Canale

Publisher

Vita e Pensiero

Format

Article |

Pdf

Pages

Online from

11-2015

Issn

0035-676X (print) | 1827-7918 (digital)

€ 6.00

Ebook format Pdf readable on these devices:

Computer
with Software:
- Adobe PDF Reader
Android
iPhone/Ipad
with App:
- Adobe PDF Reader
E-Book Reader
Ibs Tolino
Kobo

Description

The aim of the paper is to estimate, through the dynamic panel data analysis, the effects of change in structural balance on debt and public balance in 11 Eurozone countries in the years 2000-2013, then divided into two time span: 2000-2008 and 2009-2013. The results show, for the whole sample considered, that – contrary to the accounting rules – the higher is the structural balance the higher is the debt especially after 2009. In regard to the effect on overall and primary public balance, the accounting relationship is confirmed for the whole period, while less than proportional for the two sub-samples. These empirical results suggest, therefore, that if a sound public finance has to be considered as an objective to be achieved per se, it should not be pursued in times of declining macroeconomic conditions.