Advanced Search
MyIDEAS: Login

Debt sustainability in Germany: empirical evidence for federal states

Contents:

Author Info

  • Bettina Fincke
  • Alfred Greiner
Registered author(s):

    Abstract

    This paper studies whether the public debt policies of former West German states from 1975 until 2006 were sustainable. We test if the primary surplus relative to GDP is a positive function of the public debt to GDP ratio where we allow for time-varying reaction coefficients by resorting to penalised spline estimation. We also perform stationarity tests with respect to the real budget deficit to gain additional insights. Our analysis suggests that two groups of states can be distinguished, one with states that seem to pursue sustainable debt policies. However, with one exception, even those states are characterised by rising debt to GDP ratios, which is not compatible with sustainability in the long run. For the other group, sustainability can be stated only at a low-significance level or does not seem to be given at all. Thus, all states in the second group should put much more emphasis on stabilising debt.

    Download Info

    If 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.
    File URL: http://www.inderscience.com/link.php?id=39442
    Download Restriction: Access to full text is restricted to subscribers.

    As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.

    Bibliographic Info

    Article provided by Inderscience Enterprises Ltd in its journal Int. J. of Sustainable Economy.

    Volume (Year): 3 (2011)
    Issue (Month): 2 ()
    Pages: 235-254

    as in new window
    Handle: RePEc:ids:ijsuse:v:3:y:2011:i:2:p:235-254

    Contact details of provider:
    Web page: http://www.inderscience.com/browse/index.php?journalID=301

    Related research

    Keywords: debt sustainability; federal states; time-varying coefficients; unit root test; Germany; public debt policies; sustainable development.;

    References

    No references listed on IDEAS
    You can help add them by filling out this form.

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as in new window

    Cited by:
    1. Niklas Potrafke & Markus Reischmann, 2014. "Fiskalische Nachhaltigkeit und Transferzahlungen," Ifo Schnelldienst, Ifo Institute for Economic Research at the University of Munich, vol. 67(07), pages 17-22, 04.
    2. Niklas Potrafke & Markus Reischmann, 2012. "Fiscal Equalization Schemes and Fiscal Sustainability," CESifo Working Paper Series 3948, CESifo Group Munich.
    3. Niklas Potrafke & Markus Reischmann, 2014. "Fiscal Transfers and Fiscal Sustainability," CESifo Working Paper Series 4716, CESifo Group Munich.

    Lists

    This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

    Statistics

    Access and download statistics

    Corrections

    When requesting a correction, please mention this item's handle: RePEc:ids:ijsuse:v:3:y:2011:i:2:p:235-254. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Graham Langley).

    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.