STRUCTURAL PUBLIC BALANCE ADJUSTMENT AND RELATIVE POVERTY IN THE EUROZONE COUNTRIES: AN EMPIRICAL INVESTIGATION

• Authors: Canale Rosaria Rita , Liotti Giorgio
• Languages of publication: EN

Abstracts

EN

The aim of the paper is to evaluate, through panel data dynamic models, the effects of structural public balance adjustment on relative poverty in 16 Eurozone countries from 2005 till 2013. The estimates are conducted by using the mean group (MG), the pooled mean group (PMG) and the dynamic fixed effects (DFE) estimators. The first two yield estimates of the long-run coefficients without the implausible assumption of identical dynamics in each country allowing to detecting a stable relationship even in presence of reduced explanatory variables. They all – through the error correction form – allow for considering the relation between the variables in their level and the dynamic of adjustment in the short-run. All the techniques generate outcomes supporting the conclusion that fiscal retrenchments increase relative poverty both in the short and in the long-run.

Keywords

EN

RELATIVE POVERTY; FISCAL CONSOLIDATION; EUROZONE; DYNAMIC PANEL DATA

• Publisher: Institute of Slovak and World Economics and Institute for Forecasting, Slovak Academy of Sciences
• Journal: Ekonomický časopis (Journal of Economics)
• Year: 2016
• Volume: 64
• Issue: 8
• Pages: 768 – 779

Contributors

author

Canale Rosaria Rita

• University of Naples “Parthenope”, Department of Business and Economics, Via Generale Parisi 13, 80132 Naples, Italy

author

Liotti Giorgio