Sustainability of Austrian Public Debt: A Political Economy Perspective
AbstractSustainablity of Austrian public debt is investigated in the context of political objectives such as stabilizing the business cycle, increasing chances for being re-elected and implementing the ideologies of political parties. Several tests indicate that Austrian fiscal policies were sustainable in the period 1960–1974, while from 1975 on, public debt grew much more rapidly. The development of public debt in Austria seems to be driven not primarily by ideology, but by structural causes and a shift in the budgetary policy paradigm. We find some empirical evidence that governments in Austria dominated by one party run higher deficits than coalition governments. There are no indications of a political business cycle.
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Bibliographic InfoPaper provided by CESifo Group Munich in its series CESifo Working Paper Series with number 1816.
Date of creation: 2006
Date of revision:
fiscal policy; sustainability; time series; political economy;
Other versions of this item:
- Gottfried Haber & Reinhard Neck, 2006. "Sustainability of Austrian public debt: a political economy perspective," Empirica, Springer, vol. 33(2), pages 141-154, June.
- E60 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - General
- H60 - Public Economics - - National Budget, Deficit, and Debt - - - General
This paper has been announced in the following NEP Reports:
- NEP-ALL-2006-11-18 (All new papers)
- NEP-MAC-2006-11-18 (Macroeconomics)
- NEP-PBE-2006-11-18 (Public Economics)
- NEP-POL-2006-11-18 (Positive Political Economics)
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