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On the Sustainability of Budget Deficits in the Euro Area

Author

Listed:
  • Shigeyuki Hamori

    (Kobe University)

  • Naoko Hamori

    (University of Marketing and Distribution Sciences)

Abstract

We empirically examined the issue of budget sustainability for 11 euro area countries. Empirical analyses using non-stationary panel data analysis rejected, with statistical significance, the possibility of fiscal collapse in euro area countries during the period 1999 to 2005. This supports the notion that fiscal discipline rules are functioning and individual countries' fiscal deficits are steadily shrinking.

Suggested Citation

  • Shigeyuki Hamori & Naoko Hamori, 2009. "On the Sustainability of Budget Deficits in the Euro Area," Economics Bulletin, AccessEcon, vol. 29(1), pages 56-66.
    • Handle: RePEc:ebl:ecbull:eb-08e60017
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    References listed on IDEAS

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    Cited by:

    1. Shigeyuki Hamori & Naoko Hamori, 2009. "Introduction of the Euro and the Monetary Policy of the European Central Bank," World Scientific Books, World Scientific Publishing Co. Pte. Ltd., number 7169, August.

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    JEL classification:

    • E6 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook

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