Revisiting Fiscal Sustainability: Panel Cointegration and Structural Breaks in OECD Countries

The aim of the study is to assess fiscal sustainability in the Czech Republic, Hungary and Poland and to test for existence of fiscal dominance in these countries in the context of the fiscal theory of the price level. The empirical study is conducted using unit root tests and cointegration analysis with possible structural breaks. The approach is consistent with so called backward-looking approach for fiscal dominance testing proposed by Bohn (1998). The results suggest that in the Czech Republic and Poland fiscal dominance prevailed in the analyzed period, while in Hungary – monetary dominance. The result for Hungary may be caused, however, by a one-time reduction in debt resulting from changes in pension system.

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The Employment –Wage Relationship Was Keynes right after all?

American Review of Political Economy ◽

10.38024/arpe.100 ◽

2008 ◽

Vol 6 (1) ◽

Author(s):

Nicholas Apergis ◽

Keyword(s):

Real Wage ◽

Panel Cointegration ◽

Oecd Countries ◽

Statistical Evidence ◽

Real Wages ◽

Long Run ◽

Short Run

This paper investigates the existence and direction of a relationship between real wages and employment. Using a panel from ten different OECD countries, from 1950 to 2005, it applies panel cointegration and causality methodology. This study finds statistical evidence for a long run relationship between these two variables. However, it firmly rejects the hypothesis that wages cause employment in the short-run. Thus the results support Keynes’s view namely, real wages fall because employment increases, presumably via an increase in demand. The results imply that real wage reduction is not sufficient to induce an expansion of output and employment.

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Fiscal sustainability in the presence of structural breaks: Does overconfidence on resource exports hurt government’s ability to finance debt? Evidence from Nigeria

Cogent Economics & Finance ◽

10.1080/23322039.2016.1170317 ◽

2016 ◽

Vol 4 (1) ◽

pp. 1170317 ◽

Cited By ~ 1

Author(s):

Aliyu Alhaji Jibrilla ◽

Caroline Elliott

Keyword(s):

Structural Breaks ◽

Fiscal Sustainability

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The Effects of Health Expenditures to Decrease Infant Mortality Rates in OECD Countries

Multidimensional Perspectives and Global Analysis of Universal Health Coverage - Advances in Medical Diagnosis, Treatment, and Care ◽

10.4018/978-1-7998-2329-2.ch014 ◽

2020 ◽

pp. 357-383 ◽

Cited By ~ 1

Author(s):

Funda Kara ◽

İrfan Ersin

Keyword(s):

Mortality Rate ◽

Infant Mortality ◽

Health Expenditure ◽

Panel Cointegration ◽

Mortality Rates ◽

Oecd Countries ◽

Infant Mortality Rate ◽

Annual Data ◽

Causality Analysis ◽

Analysis Process

There is a positive relationship between the health level of the society and its economic development. The main reason is that improving quality of the lives and increasing lifetime has lead to higher economic performance. This evaluates the relationship between health expenditure and infant mortality rate in OECD countries. In the analysis process, 20 different countries in the OECD are selected and annual data of these countries for the years between 1980 and 2017 is evaluated with the help of Kao panel cointegration and Dumitrescu-Hurlin causality analysis. The findings show that there is long term relationship between health expenditure and infant mortality rates in OECD countries. Another important conclusion is that there is a causality analysis from health expenditure to the infant mortality rate. While considering these results, it is recommended that OECD countries should take some actions in order to increase health expenditure so that it can be possible to decrease infant mortality rate.

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