Stock-flow adjustment – only a residual value? Evidence from European Union countries
Stock-flow adjustment – only a residual value? Evidence from European Union countries
Author(s): Monika BanaszewskaSubject(s): National Economy, Supranational / Global Economy, Financial Markets, Socio-Economic Research
Published by: Wyższa Szkoła Informatyki i Zarządzania z siedzibą w Rzeszowie
Keywords: public debt; budget deficit; panel data analysis;
Summary/Abstract: The aim of the article is to investigate the fiscal determinants of stock-flow adjustment (SFA). Previous literature suggests that SFA may be used strategically to reduce budget deficit and public debt. As such, SFA impairs fiscal transparency and may endanger fiscal sustainability. Therefore, special attention should be paid by economists and policymakers. The study pertains to the European Union countries in the years 2005-2016. The empirical analysis supports the hypothesis that SFA is inversely related to public debt, whereas the inverse relationship between budget balance and SFA is not confirmed. The article contains additional analyses for selected components of SFA as well as narrower time and space coverage.
Journal: Financial Internet Quarterly
- Issue Year: 15/2019
- Issue No: 3
- Page Range: 10-20
- Page Count: 11
- Language: English
