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dc.contributor.authorBayar, Alien_US
dc.contributor.authorSmeets, Bramen_US
dc.date.accessioned2009-03-03en_US
dc.date.accessioned2009-07-28T08:48:41Z-
dc.date.available2009-07-28T08:48:41Z-
dc.date.issued2009en_US
dc.identifier.urihttp://hdl.handle.net/10419/26591-
dc.description.abstractThis paper formulates a dynamic Random Coefficient Model (RCM) to consider a set of popular determinants of public deficits in the EU-15 over the period 1971-2006, both at a country-specific level and from a population-wide perspective. Although the extent of government deficits and debt has been one of the most debated macroeconomic issues in recent times, the models trying to capture the explanatory powers driving these deficits typically estimate models that pose the strict assumption of homogeneity on the coefficients over all countries in the model. The sensibility of this assumption will be investigated, with results showing that an increase in the degree of heterogeneity leads to an improvement in the model fit and provides additional information to nuance the effects of the explanatory variables. In this way, the paper exposes a limited degree of partisanship over all countries under consideration, but on the other hand provides evidence for opportunistic behaviour of policymakers in the major part of the sample. The effect of institutional changes following the enforcement of the Maastricht Treaty varies over the countries and is related to the necessity of budgetary consolidation.en_US
dc.language.isoengen_US
dc.publisherCESifo Münchenen_US
dc.relation.ispartofseriesCESifo working paper 2546en_US
dc.subject.jelC11en_US
dc.subject.jelE6en_US
dc.subject.jelH6en_US
dc.subject.jelH87en_US
dc.subject.ddc330en_US
dc.subject.keywordFiscal policyen_US
dc.subject.keywordEuropean Monetary Unionen_US
dc.subject.keywordRandom coefficient modelen_US
dc.subject.keywordBayesian analysisen_US
dc.subject.stwFinanzpolitiken_US
dc.subject.stwHaushaltsdefiziten_US
dc.subject.stwPublic Choiceen_US
dc.subject.stwEuropäische Wirtschafts- und Währungsunionen_US
dc.subject.stwKonvergenzkriterienen_US
dc.subject.stwZustandsraummodellen_US
dc.subject.stwSchätzungen_US
dc.subject.stwEU-Staatenen_US
dc.titleEconomic and political determinants of budget deficits in the European Union: a dynamic random coefficient approachen_US
dc.typeWorking Paperen_US
dc.identifier.ppn592855805en_US
dc.rightshttp://www.econstor.eu/dspace/Nutzungsbedingungen-
Appears in Collections:CESifo Working Papers, CESifo Group Munich

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