The quest for a fiscal rule : Italy, 1861–1998
Cliometrica, 2008, Vol. 2, No. 3, pp. 259-274
RICCIUTI, Roberto, The quest for a fiscal rule : Italy, 1861–1998, Cliometrica, 2008, Vol. 2, No. 3, pp. 259-274 - https://hdl.handle.net/1814/42783
Retrieved from Cadmus, EUI Research Repository
The Italian fiscal history is characterised by a number of fiscal consolidations. In this study, we characterise fiscal policy in terms of non-linear deterministic processes. We find that government spending and taxes can be described as being non-linear trend stationary processes instead of unit roots. A long run equilibrium relationship—a non-linear co-trend—does exist between the two series, fulfilling the intertemporal government budget constraint. We interpret this result as evidence of a long run fiscal rule that different policy makers have adopted, putting public finance in balance.
First online: 04 December 2007; Published also in: Institute of Public Policy and Public Choice - POLIS, 2007 (2007-09)
Cadmus permanent link: https://hdl.handle.net/1814/42783
Full-text via DOI: 10.1007/s11698-007-0022-4
ISSN: 1863-2505; 1863-2513
Keyword(s): Intertemporal government budget constraint Non-linear trend stationarity Non-linear co-trending E620 H62 N100
Published version: http://econpapers.repec.org/paper/ucaucapdv/86.htm
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