Essays on macroeconomic policy: three econometric studies on fiscal policy issues


This dissertation is composed of three essays, each examining topics relating to fiscal policy. This first essay examines the relationship between the fiscal and current account deficit, aiming at validating the “twin deficits” hypothesis for five European economies; Portugal, Ireland, Italy, Greece and Spain. The empirical analysis uses annual data over the period 1971-2009 and applies several alternative linear and asymmetric time series techniques, designed to account for possible structural breaks and asymmetric causal effects between the explored deficit series. The findings reveal that the “twin deficits” hypothesis holds for Portugal, Ireland, Greece and Spain. In addition, regarding the effect of the fiscal deficit on the current account deficit, the overall evidence supports the existence of asymmetric long-run effects, indicating that negative fiscal shocks dominate the positive ones; that is, a decrease in the fiscal deficit has a greater impact on the current account defici ...
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Alternative title
Δοκίμια μακροοικονομικής πολιτικής: τρεις οικονομετρικές μελέτες σε θέματα δημοσιονομικής πολιτικής
Trachanas, Emmanouil Stamatios
Degree Grantor
Aristotle University Of Thessaloniki (AUTH)
Committee members
Κατρακυλίδης Κωνσταντίνος
Βαρσακέλης Νικόλαος
Σιδηρόπουλος Μωυσής
Φουσέκης Παναγιώτης
Καρφάκης Κωνσταντίνος
Παναγιωτίδης Θεόδωρος
Παλαιολόγου Σουζάνα-Μαρία
Social Sciences
Economics and Business
Twin deficit hypothesis; Budget deficit sustainability; Revenue-expenditure nexus; Budget deficit; Current account deficit; Cointegration; Structural breaks; Asymmetric cointegration; Threshold Cointegration
287 σ., tbls., fig., ind.