A Structural VAR analysis of Fiscal shocks on current accounts in Greece
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...
| Main Authors: | , , |
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| Format: | Article |
| Language: | English |
| Published: |
General Association of Economists from Romania
2015-09-01
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| Series: | Theoretical and Applied Economics |
| Subjects: | |
| Online Access: |
http://store.ectap.ro/articole/1106.pdf
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| _version_ | 1818558847055298560 |
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| author | Aviral Kumar TIWARI Suresh K G Mihai MUTAȘCU |
| author_facet | Aviral Kumar TIWARI Suresh K G Mihai MUTAȘCU |
| author_sort | Aviral Kumar TIWARI |
| collection | DOAJ |
| description | 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. |
| first_indexed | 2024-12-14T00:17:37Z |
| format | Article |
| id | doaj.art-d38329395af44df7858a0c6ff831562b |
| institution | Directory Open Access Journal |
| issn | 1841-8678 1844-0029 |
| language | English |
| last_indexed | 2024-12-14T00:17:37Z |
| publishDate | 2015-09-01 |
| publisher | General Association of Economists from Romania |
| record_format | Article |
| series | Theoretical and Applied Economics |
| spelling | doaj.art-d38329395af44df7858a0c6ff831562b2022-12-21T23:25:24ZengGeneral Association of Economists from RomaniaTheoretical and Applied Economics1841-86781844-00292015-09-01XXII352018418678A Structural VAR analysis of Fiscal shocks on current accounts in GreeceAviral Kumar TIWARI0Suresh K G1Mihai MUTAȘCU2 IBS-Hyderabad, IFHE University, Hyderabad, India IBS-Hyderabad, IFHE University, Hyderabad, India University of Orléans, France 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. http://store.ectap.ro/articole/1106.pdf Budget DeficitCurrent Account DeficitSVAR AnalysisStructural Breaks |
| spellingShingle | Aviral Kumar TIWARI Suresh K G Mihai MUTAȘCU A Structural VAR analysis of Fiscal shocks on current accounts in Greece Theoretical and Applied Economics Budget Deficit Current Account Deficit SVAR Analysis Structural Breaks |
| title | A Structural VAR analysis of Fiscal shocks on current accounts in Greece |
| title_full | A Structural VAR analysis of Fiscal shocks on current accounts in Greece |
| title_fullStr | A Structural VAR analysis of Fiscal shocks on current accounts in Greece |
| title_full_unstemmed | A Structural VAR analysis of Fiscal shocks on current accounts in Greece |
| title_short | A Structural VAR analysis of Fiscal shocks on current accounts in Greece |
| title_sort | structural var analysis of fiscal shocks on current accounts in greece |
| topic | Budget Deficit Current Account Deficit SVAR Analysis Structural Breaks |
| url |
http://store.ectap.ro/articole/1106.pdf
|
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