Public debt sustainability in Serbia before and during the global financial crisis

Andrić, Vladimir and Arsić, Milojko and Nojković, Aleksandra (2016) Public debt sustainability in Serbia before and during the global financial crisis. Economic Annals. pp. 47-77. ISSN 0013-3264

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Abstract

We have analyzed the behaviour
of primary fiscal balance and
public debt in Serbia before and in the aftermath
of the global financial crisis. The
results of our analysis are: i) public debt to
GDP ratioexhibits (near) unit root behaviour
with an overall upward time trend; ii)
the response of primary fiscal balance to
public debt has been insufficient to mean
revert the upward trend in government
debt; iii) the efforts of the Serbian government
to repay the debt principal after the
fiscal rule breach have not been persistent,
providing empirical support to the fiscal fatigue
hypothesis; iv) the government budget
constraint has deteriorated since the beginning
of the global financial crisis; v) the response
of primary fiscal balance to public
debt from the onset of the global financial
crisis has dropped more severely in comparison
to other European economies.

Item Type:	Article
Additional Information:	COBISS.ID=512407906
Uncontrolled Keywords:	Serbia, unit root tests, fiscal reaction functions, global financial crisis
Research Department:	Macroeconomics
Depositing User:	Jelena Banovic
Date Deposited:	24 Oct 2017 13:49
Last Modified:	30 Mar 2020 13:18
URI:	http://35.240.28.64/id/eprint/1143
Author Links:	[error in script] No links available.

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