Short-Run Dynamic Effects of Debt Changes on the Primary Budget Surplus

• 발행기관: 한국재정학회(구 한국재정·공공경제학회)
• 저자명: Ki-Baeg Park Woocheol Kim
• 간행물 정보: 『한국재정학회 학술대회 논문집』2006년도 추계학술대회 논문집, 1~24쪽, 전체 24쪽
• 주제분류: 경제경영 > 경제학
• 파일형태: PDF
• 발행일자: 2006.10.30

영문 초록

This paper provides a modification of Bohn(1998)'s test for the sustainability of fiscal policy. The new aspect of the alternative test lies in the emphasis of the short-run adjustment of the primary budget surplus in a response to changes in debt. To capture the short-run dynamic effects of debt increase on the primary surplus, we use a structural VAR model whose identification is given by exploiting the period-by-period budget equation. A basic impulse-response analysis then can show how governments react to increases of debt. As an empirical illustration, the new method is applied to the real data from South Korea.

목차

Abstract

I. Introduction

II. Concept of Fiscal Sustainability

III. Data and Preliminary Results

IV. The Structural VAR Approach

V. Conclusion

References

Appendix

키워드

Bohn's test sustainability of fiscal policy government debt