EuropeÕs Deficit Free Riders: A Panel Data Analysis
AbstractThe paper proposes an empirical method to measure the free riding possibility of public deficits in Europe. We use a cross-sectional time-series analysis of differences in national public deficits since 1991, and we compare the evolution of deficits before and after the inception of the euro in 1999. Evidence is that the countries breaching the Stability and Growth Pact are not likely free riders, but rather leaders in terms of deficits. In this case, they may lead the march towards higher public deficits in Europe.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoArticle provided by European Political Economy Infrastructure Consortium in its journal European Political Economy Review.
Volume (Year): 3 (2005)
Issue (Month): Spring ()
Europe; Fiscal rule; Stability and Growth Pact;
Find related papers by JEL classification:
- B41 - Schools of Economic Thought and Methodology - - Economic Methodology - - - Economic Methodology
- P51 - Economic Systems - - Comparative Economic Systems - - - Comparative Analysis of Economic Systems
- O47 - Economic Development, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Measurement of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence
- H62 - Public Economics - - National Budget, Deficit, and Debt - - - Deficit; Surplus
You can help add them by filling out this form.
CitEc Project, subscribe to its RSS feed for this item.
- Thierry Warin, 2005. "Stability and Growth Pact: An Index to Trigger an Early Warning Earlier?," Middlebury College Working Paper Series 0502, Middlebury College, Department of Economics.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Prof.Dr.Sebastian Dullien).
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.