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Fiscal convergence in the European Union

  • Kocenda, Evzen
  • Kutan, Ali M.
  • Yigit, Taner M.

We empirically examine the fiscal convergence of the recent ten European Union (EU) members using the Maastricht fiscal convergence criteria. We test for absolute beta and sigma convergence of the new members in comparison to the Maastricht benchmarks, as well as the EU15 figures, using methodologies that allow for structural breaks. The results show poor fiscal performance in the European Union in general, suggesting that monetary unions do not necessarily encourage fiscal convergence for its members.

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Article provided by Elsevier in its journal The North American Journal of Economics and Finance.

Volume (Year): 19 (2008)
Issue (Month): 3 (December)
Pages: 319-330

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Handle: RePEc:eee:ecofin:v:19:y:2008:i:3:p:319-330
Contact details of provider: Web page: http://www.elsevier.com/locate/inca/620163

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