Theoretical and Applied Economics
No. 3 / 2015 (604), Autumn
A Structural VAR analysis of Fiscal shocks on current accounts in Greece
IBS-Hyderabad, IFHE University, Hyderabad, India
Suresh K G
IBS-Hyderabad, IFHE University, Hyderabad, India
Mihai MUTAȘCU
University of Orléans, France
Abstract. The present study is, in particular, an attempt to test the relationship between budget deficit and current account balance in Greece, from 1976 to 2009, using a structural autoregressive (SVAR) model. We focused on Greece because this country has presented in the last years seriously fiscal changes, and severely damage in the level of macroeconomic variables. We find that in case of Greece there is no long run relationship between budget deficit and current account deficit either in the presence or in absence of structural breaks in the data set. Further, Impulse Response Functions (IRFs) calculated in the framework of SVAR shows that increase in budget deficit increases the current account deficit, which is consistent with the twin deficit hypothesis.
Keywords: Budget Deficit, Current Account Deficit, SVAR Analysis, Structural Breaks.
Contents
- A Structural VAR analysis of Fiscal shocks
on current accounts in Greece
Aviral Kumar TIWARI
Suresh K G
Mihai MUTAȘCU
- Is CPI a suitable tool for inflation targeting? A critical view
Selim KAYHAN
Muhsin KAR
Ahmet ŞAHBAZ
- A new beginning for SMEs development?
Dan Costin NIȚESCU
- About the conceptualization of social innovation
Cornel IONESCU
- Economic models of voting: an empirical
study on the electoral behavior in Romanian
2012 parliamentary elections
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Andra ROESCU
- Revisit Export and GDP Nexus in China and Taiwan:
A Rolling Window Granger Causality Test
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Chih-She WU
- Sustainability of balancing item of balance of payment
for OECD countries: evidence from Fourier Unit Root Tests
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- The European Union brand and its appeal
to young Europeans – an in-depth perspective
from Romanian student
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Alexandra VIȚELAR
- Analysis of final consumption and gross investment influence
on GDP – multiple linear regression model
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- A survey of the effect of trade openness size
on inflation rate in Iran using ARDL
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- A labor utility index to measure worker welfare
and labor market performance
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- Financial development and economic growth
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- Liquidity ratios. A structural and dynamic analysis,
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- The Romanian banking sector restructuring
and the economic recovery
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- Towards a sustainable economy
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- The role and influence of the political factor in establishing
the financial and budgetary balance and on national stability
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- The factors that affect on foreign direct investments in Turkey
(sectoral comparisons)
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