IDEAS home Printed from https://ideas.repec.org/a/vep/journl/y2015v129i2p161-178.html
   My bibliography  Save this article

On the Objective of Sound Public Finance in Eurozone

Author

Listed:
  • Mariangela Bonasia

    () (Department of Business and Economic Studies, University of Naples ‘‘Parthenope’)

  • Rosaria Rita Canale

    () (Department of Business and Economic Studies, University of Naples ‘‘Parthenope’’)

Abstract

The aim of the paper is to estimate, through the dynamic panel data analysis, the effects of change in structural balance on debt and public balance in 11 Eurozone countries in the years 2000- 2013, then divided into two time span: 2000-2008 and 2009-2013. The results show, for the whole sample considered, that – contrary to the accounting rules – the higher is the structural balance the higher is the debt especially after 2009. In regard to the effect on overall and primary public balance, the accounting relationship is confirmed for the whole period, while less than proportional for the two sub-samples. These empirical results suggest, therefore, that if a sound public finance has to be considered as an objective to be achieved per se, it should not be pursued in times of declining macroeconomic conditions.

Suggested Citation

  • Mariangela Bonasia & Rosaria Rita Canale, 2015. "On the Objective of Sound Public Finance in Eurozone," Rivista Internazionale di Scienze Sociali, Vita e Pensiero, Pubblicazioni dell'Universita' Cattolica del Sacro Cuore, vol. 129(2), pages 161-178.
  • Handle: RePEc:vep:journl:y:2015:v:129:i:2:p:161-178
    as

    Download full text from publisher

    File URL: http://riss.vitaepensiero.it/scheda-articolo_digital/mariangela-bonasia-rosaria-rita-canale/on-the-objective-of-sound-public-finance-in-eurozone-000518_2015_0002_0161-319883.html
    Download Restriction: Yes

    More about this item

    Keywords

    Structural balance; Sound public finance; Dynamic panel ordinary last squares;

    JEL classification:

    • E60 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - General
    • E62 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - Fiscal Policy
    • C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models

    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:vep:journl:y:2015:v:129:i:2:p:161-178. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Vep - Vita e Pensiero). General contact details of provider: .

    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 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.

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

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.