ASSESSING THE PUBLIC DEBT SUSTAINABILITY USING THE PENALIZED SPLINE REGRESSION. EMPIRICAL EVIDENCE FOR ROMANIA
ASSESSING THE PUBLIC DEBT SUSTAINABILITY USING THE PENALIZED SPLINE REGRESSION. EMPIRICAL EVIDENCE FOR ROMANIA
Author(s): Alexandra Claudia GrosuSubject(s): Politics / Political Sciences, Politics, Economy, National Economy, Supranational / Global Economy, Governance, Economic policy, Public Finances
Published by: Editura Tehnopress
Keywords: public debt; sustainability of public debt; penalized spline regression; Romania economy;
Summary/Abstract: Since the 2008 financial crisis, public debt sustainability has been a major topic in economic discussions. With the added strains of the COVID-19 pandemic and ongoing global conflicts, the conversation around managing and maintaining public debt has only intensified. In the paper, we study governments’ reactions to the accumulation of debt from Romania, using annual data from 2000 to 2023. The empirical approach applied in the paper include time series estimations using penalized spline regression. We use a semi-parametric model with time-varying coefficients and we include in the model some control variables which are particularly relevant in the case of Romania.
Journal: Journal of Public Administration, Finance and Law
- Issue Year: 2024
- Issue No: 32
- Page Range: 217-231
- Page Count: 16
- Language: English
