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Analysing Of Government'S Fiscal Behaviour In The Eu Member States Through Clustering Procedure

Author

Listed:
  • Pirvu, Daniela

    (University of Pitesti, Romania)

  • Dutu, Amalia

    (University of Pitesti, Romania)

  • Enachescu, Carmen

    (University of Craiova, Romania)

Abstract

The typical behaviour of EU Member States over the past decades has been to spend more public money than revenue earned by the government to finance programs with more or less important impact on society. Budget deficits and public debt have become important issues for EU countries, especially since a common currency, combined with very different tax regimes, can give rise to dangerous and unfair behaviours. The study proposes a new research technique for the fiscal behaviour of EU Member States. In the first stage of the research, a number of variables related to structural imbalances were defined. We assumed that EU Member States can be grouped into clusters according to these variables by which we characterize disciplined or undisciplined fiscal behaviour. We used Kmeans cluster analysis in order to establish if there are some clear patterns of fiscal behaviour among EU members. The research findings indicate that the research technique for the fiscal behaviour of Member States we proposed might be developed so as to allow identifying the Member States facing or likely to face problems in terms of public finances sustainability.

Suggested Citation

  • Pirvu, Daniela & Dutu, Amalia & Enachescu, Carmen, 2019. "Analysing Of Government'S Fiscal Behaviour In The Eu Member States Through Clustering Procedure," UTMS Journal of Economics, University of Tourism and Management, Skopje, Macedonia, vol. 10(1), pages 23-39.
  • Handle: RePEc:ris:utmsje:0258
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    More about this item

    Keywords

    election cycle; fiscal sustainability; Kmeans cluster analysis;
    All these keywords.

    JEL classification:

    • E62 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - Fiscal Policy
    • H60 - Public Economics - - National Budget, Deficit, and Debt - - - General

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