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The Italian fiscal sustainability in a long-run perspective

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  • Magazzino, Cosimo
  • Mutascu, Mihai Ioan

Abstract

In this paper, we analyze the relationship between government expenditures and revenues for Italy over the period 1862–2013. The analysis of the expenditures-revenues nexus is also relevant from the point of view of fiscal sustainability. Our empirical strategy adopts the wavelet analysis approach. The empirical evidence demonstrates the relevance of the frequency domain in analyzing the relationship between government expenditures and revenues, which may lead to alternative policy implications. Indeed, after the recent economic crises, guaranteeing its own financial stability is an increasingly difficult task for a highly indebted government like the Italian one.

Suggested Citation

  • Magazzino, Cosimo & Mutascu, Mihai Ioan, 2022. "The Italian fiscal sustainability in a long-run perspective," The Journal of Economic Asymmetries, Elsevier, vol. 26(C).
    • Handle: RePEc:eee:joecas:v:26:y:2022:i:c:s1703494922000159
    DOI: 10.1016/j.jeca.2022.e00254
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    3. Caravaggio, Nicola & Carnazza, Giovanni, 2022. "The Italian nominal interest rate conundrum: A problem of growth or public finance?," Structural Change and Economic Dynamics, Elsevier, vol. 62(C), pages 313-326.

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    More about this item

    Keywords

    fiscal Sustainability; Government expenditures; Government revenues; Wavelet analysis; Spectral granger-causality; Italy;
    All these keywords.

    JEL classification:

    • C22 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Time-Series Models; Dynamic Quantile Regressions; Dynamic Treatment Effect Models; Diffusion Processes
    • E62 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - Fiscal Policy; Modern Monetary Theory
    • H62 - Public Economics - - National Budget, Deficit, and Debt - - - Deficit; Surplus
    • H63 - Public Economics - - National Budget, Deficit, and Debt - - - Debt; Debt Management; Sovereign Debt

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