EconStor >
ifo Institut – Leibniz-Institut für Wirtschaftsforschung an der Universität München >
CESifo Working Papers, CESifo Group Munich >

Please use this identifier to cite or link to this item:

http://hdl.handle.net/10419/18755
  

Full metadata record

DC FieldValueLanguage
dc.contributor.authorGalli, Emmaen_US
dc.contributor.authorPadovano, Fabioen_US
dc.coverage.temporal1950-2002en_US
dc.date.accessioned2009-01-28T15:52:39Z-
dc.date.available2009-01-28T15:52:39Z-
dc.date.issued2005en_US
dc.identifier.urihttp://hdl.handle.net/10419/18755-
dc.description.abstractThis paper has two goals. 1) To evaluate the sustainability of Italian public deficits according to the methodology developed by Trehan and Walsh (1988, 1991) and Bohn (2004); 2) To analyze how the determinants of debt creation evolved in the years following the Maastricht Treaty and how this evolution shaped the development of the Italian public finances. The analysis is carried out in three steps; first we estimate and compare the stochastic properties of the main indicators of the Italian budget performance to test for sustainability; second, we confront the results of a cointegration-vector error correction model on two sample periods: a ?pre Maastricht? (1950-1991) and a ?post Maastricht? (1950-2002), to identify the main determinants of public deficits, according to the theoretical literature and the dynamic relationship between each of them and the dependent variable; third, we use the results of these estimates to specify a dummy variable model that evaluates how Italian fiscal policy reacted to changes in these determinants in the 1950-2002 sample. We conclude that a) In this period Italian public finances failed the sustainability test; b) Debt creation is much more sensitive now than before 1991 to external constraints, chiefly the numerical rules imposed by the Maastricht Treaty itself, institutional factors, such as the budget approval rules and the relative political power of the Minister for the Economy.en_US
dc.language.isoengen_US
dc.publisheren_US
dc.relation.ispartofseriesCESifo working papers 1391en_US
dc.subject.jelH62en_US
dc.subject.jelE62en_US
dc.subject.ddc330en_US
dc.subject.keywordpublic deficitsen_US
dc.subject.keywordMaastricht Treatyen_US
dc.subject.keywordcomparative testen_US
dc.subject.keywordcointegrationen_US
dc.subject.stwHaushaltsdefiziten_US
dc.subject.stwFinanzpolitiken_US
dc.subject.stwKonvergenzkriterienen_US
dc.subject.stwSchätzungen_US
dc.subject.stwItalienen_US
dc.titleSustainability and determinants of Italian public deficits before and after Maastrichten_US
dc.typeWorking Paperen_US
dc.identifier.ppn479276498en_US
dc.rightshttp://www.econstor.eu/dspace/Nutzungsbedingungen-
Appears in Collections:CESifo Working Papers, CESifo Group Munich

Files in This Item:
File Description SizeFormat
cesifo1_wp1391.pdf749.65 kBAdobe PDF
No. of Downloads: Counter Stats
Show simple item record
Download bibliographical data as: BibTeX

Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.