IDEAS home Printed from https://ideas.repec.org/a/agr/journl/vxxiiy2015i1(602)p151-162.html
   My bibliography  Save this article

The measurement of fiscal behavior in some European countries: Panel data perspective

Author

Listed:
  • Süleyman BOLAT

    (Aksaray University, Aksaray, Turkey)

  • Aviral Kumar TIWARI

    (IBS/IFHE Hyderabad, India)

Abstract

This paper tests for budget balance of 12 European countries over the period 1999:1-2013:2 by the Sequential Panel Selection Method (SPSM) developed by Chortareas and Kapetanios (2009) using the Panel KSS test with a Fourier function. This article analyses both Kapetanios et al. (2003, hereafter, KSS) without Fourier and KSS with Fourier function. SPSM method tests for unit root that jointly consider structural breaks and nonlinear adjustment. It is applied to the data on 12 European countries and we classify the whole panel into a group of stationary and nonstationary series. In doing so, we can clearly determine which series in the panel are stationary process. We reported the results of the Panel KSS test with a Fourier function and found that the budget balance in 7 countries are stationary and this result is in accord with intertemporal budget constraint. Other hand, budget balance in five countries, namely Finland, United Kingdom, Sweden, Portugal and Latvia has in violation of their intertemporal budget constraint.

Suggested Citation

  • Süleyman BOLAT & Aviral Kumar TIWARI, 2015. "The measurement of fiscal behavior in some European countries: Panel data perspective," Theoretical and Applied Economics, Asociatia Generala a Economistilor din Romania - AGER, vol. 0(1(602), S), pages 151-162, Spring.
    • Handle: RePEc:agr:journl:v:xxii:y:2015:i:1(602):p:151-162
    as

    Download full text from publisher

    File URL: http://store.ectap.ro/articole/1063.pdf
    Download Restriction: no
    File URL: http://www.ectap.ro/articol.php?id=1063&rid=118
    Download Restriction: no
    ---><---

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:agr:journl:v:xxii:y:2015:i:1(602):p:151-162. See general information about how to correct material in RePEc.

    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.

    We have no bibliographic references for this item. You can help adding them by using 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 RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Marin Dinu (email available below). General contact details of provider: https://edirc.repec.org/data/agerrea.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.