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Fiscal sustainability of the Visegrad Group countries in the aftermath of global economic crisis

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  • Przemyslaw Wlodarczyk

    (Faculty of Economics and Sociology, University of Lodz)

Abstract

The article investigates the sustainability of fiscal policies of the Visegrad Group countries (Poland, Czech Republic, Hungary and Slovakia) in the years 1996- 2015 using statistical and econometric analysis methods. Special attention is given to the identification of subperiods of low sustainability within the framework of the Markov switching cointegration model. The results of the research show that the global economic crisis had little effect on the fiscal stance of the analysed countries, because their expansionary, countercyclical fiscal policies were promptly replaced by more restrictive policies. However, further improvements in fiscal discipline are needed to ensure sufficient space for fiscal reaction in the future

Suggested Citation

  • Przemyslaw Wlodarczyk, 2017. "Fiscal sustainability of the Visegrad Group countries in the aftermath of global economic crisis," Lodz Economics Working Papers 2/2017, University of Lodz, Faculty of Economics and Sociology.
  • Handle: RePEc:ann:wpaper:2/2017
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    References listed on IDEAS

    as
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    More about this item

    Keywords

    fiscal policy; fiscal sustainability; Visegrad Group; economic crisis; Markov switching cointegration.;
    All these keywords.

    JEL classification:

    • E62 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - Fiscal Policy
    • H63 - Public Economics - - National Budget, Deficit, and Debt - - - Debt; Debt Management; Sovereign Debt

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