IDEAS home Printed from https://ideas.repec.org/a/pes/ierequ/v12y2017i2p261-280.html
   My bibliography  Save this article

Short-Term Fiscal Imbalance Comparison In V4 Countries Using A Dynamic Conditional Correlation Approach

Author

Listed:
  • Lucia Mihokova

    (Technical University of Kosice, Slovakia)

  • Slavomira Martinkova

    (Technical University of Kosice, Slovakia)

  • Radovan Drab

    (Technical University of Kosice, Slovakia)

Abstract

Research background: The crisis periods have highlighted the interdependence between individual European economies in the area of economic and fiscal development. The common development tendencies raise the question whether the fiscal indebtedness and preferred fiscal policy of V4 countries can be considered as interdepending. Considering this assumption, a possibility for implementing a similar type of consolidation in selected clusters of countries could be proposed. Purpose of the article: The research is, from the empirical point of view, focused on the analysis and comparison of primary balance indicator, analysis and assessment of fiscal measures (in identified fiscal episodes) and analysis of fiscal development intercorrelations using the dynamic conditional correlation approach. Methods: The empirical assessment of the research objective is, from the methodological point of view, divided into five phases: (1) the calculation of primary deficit indicator, (2) the analysis, comparison and assessment of the fiscal development in the V4 countries based on the annual primary deficit during the selected period 1999–2016, (3) the seasonal adjustment of performing time series and non-stationarity testing, (4) the dynamic conditional correlation approach (DCC) application. Within the analysis, the traditional and specific methods were used (time series analysis, content analysis, descriptive statistics, correlation methods, DCC approach). Findings & Value added: The results of the research suggest that between V4 countries do exist significant differences based on which cannot be clearly confirmed the assumption about the fiscal development interdependence in V4 countries. From the long-term perspective, it can be stated that the fiscal development in V4 countries is a very slightly positively related aspect, but in the context of the implementation of a common consolidation strategy it is not sufficient.

Suggested Citation

  • Lucia Mihokova & Slavomira Martinkova & Radovan Drab, 2017. "Short-Term Fiscal Imbalance Comparison In V4 Countries Using A Dynamic Conditional Correlation Approach," Equilibrium. Quarterly Journal of Economics and Economic Policy, Institute of Economic Research, vol. 12(2), pages 261-280, June.
  • Handle: RePEc:pes:ierequ:v:12:y:2017:i:2:p:261-280
    DOI: 10.24136/eq.v12i2.14
    as

    Download full text from publisher

    File URL: http://dx.doi.org/10.24136/eq.v12i2.14
    Download Restriction: no

    File URL: https://libkey.io/10.24136/eq.v12i2.14?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    More about this item

    Keywords

    primary balance; dynamic conditional correlation approach; V4 countries; consolidation policy; role of government;
    All these keywords.

    JEL classification:

    • H12 - Public Economics - - Structure and Scope of Government - - - Crisis Management
    • H20 - Public Economics - - Taxation, Subsidies, and Revenue - - - General
    • H50 - Public Economics - - National Government Expenditures and Related Policies - - - General
    • H62 - Public Economics - - National Budget, Deficit, and Debt - - - Deficit; Surplus

    Statistics

    Access and download statistics

    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:pes:ierequ:v:12:y:2017:i:2:p:261-280. 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: Adam P. Balcerzak (email available below). General contact details of provider: https://edirc.repec.org/data/ibgtopl.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.