Journal of Yaşar University

Yazarlar: İsmet GÖÇER

Konular:-

DOI:10.19168/jyu.19271

Anahtar Kelimeler:Budget Deficits,Sustainability,Cross-Sectional Dependence,Panel Data Analysis.

Özet: Budget deficits are one of the most important macroeconomic problems in many countries. High public spending and insufficiency of public revenue are main reasons of collapse for Greek, Italy, Spain, Portugal and Ireland economies. Therefore, the conservation of budget balance and sustainability of budget deficits have got a great importance. In this study; the sustainability of budget deficit in selected 25 OECD countries was analyzed by using 2000-2011 period data, via panel co-integration analysis under cross-section dependence. According to the results of analysis; cross-section dependence was determined among these countries. Therefore, an economic shock coming to one of these countries, affects the others, too. Co-integration relationship was determined between these series. Consequently, it has been seen budget deficits of these countries were sustainable in weakly form in the long term.

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