Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/287437 
Year of Publication: 
2021
Citation: 
[Journal:] Empirica [ISSN:] 1573-6911 [Volume:] 49 [Issue:] 1 [Publisher:] Springer US [Place:] New York, NY [Year:] 2021 [Pages:] 53-70
Publisher: 
Springer US, New York, NY
Abstract: 
Government debt development is a timeless issue in economics that has gained even more attention in light of the global financial crisis and the Covid 19 pandemic crisis. The following paper uses several specifications of a logistic probability model to examine the key determinants underlying substantial public debt reductions in Central and Eastern European EU Member States for the period 1996–2020. The results suggest that fiscal adjustments are more likely to be successful in reducing public debt if they are based on expenditure cuts rather than revenue increases. In this context, cuts in social benefits and government employee compensation prove to be particularly effective. In addition, favourable economic growth rates increase the probability of a substantial reduction in government debt.
Subjects: 
Public debt
Fiscal policy
Central and Eastern Europe
Logistic probability model
JEL: 
C35
E62
H6
Persistent Identifier of the first edition: 
Creative Commons License: 
cc-by Logo
Document Type: 
Article
Document Version: 
Published Version

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