Indicators and Tests of Fiscal Policy Sustainability: the Italian Case 1970-2006 - Matteo Formenti - Books - LAP LAMBERT Academic Publishing - 9783843381505 - December 21, 2010
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Indicators and Tests of Fiscal Policy Sustainability: the Italian Case 1970-2006

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The issue of sustainability of Italian fiscal policy in the period 1970-2006 is studied with two instruments: indicators and tests. The indicators Primary Gap, Tax Gap developed by Chouraqui et al. (1990) and S2 by the European Commission show a non- sustainable fiscal policy. Tests of sustainability following Trehan and Walsh (1988), Hakkio and Rush (1991) and Bohn (2008) show an opposite result accepting the sustainability path of fiscal variables. According to the strategy proposed by De Luzenberger and Marini (1993) a Chow-type test, that confirms a systematic change of fiscal policy in 1992-1993, permits to discern the two conflicting results in favor of the indicators' response.

Media Books     Paperback Book   (Book with soft cover and glued back)
Released December 21, 2010
ISBN13 9783843381505
Publishers LAP LAMBERT Academic Publishing
Pages 64
Dimensions 226 × 4 × 150 mm   ·   113 g
Language German