Sustainability of public debt, deficits of public budgets and economic growth
| Author: | Bc. Jana Marečková |
|---|---|
| Year: | 2011 - summer |
| Leaders: | Mgr. Kristýna Ivanková |
| Consultants: | |
| Work type: | Bachelors |
| Language: | Czech |
| Pages: | 95 |
| Awards and prizes: | |
| Link: | |
| Abstract: | Main goal of this thesis is to test sustainability of scal policy and e ects of scal policy on economic growth in selected countries (Austria, Belgium, France, Italy and United Kingdom). First part is about history of economic thought concerning this topic and theoretical concept of models. Second part contains econometric analysis. According to our results we proved sustainability of public debt in Belgium and Italy. Positive reaction of primary surplus on rising debt to GDP ratio was found for Austria and United Kingdom. However the sustainability of public debt was not con rmed. Negative reaction of primary surplus on rising debt to GDP ratio on average was the result for France. In analysis of e ects of scal policy on economic growth we divided government revenues as distortive and non-distortive and government expenditures as pro- ductive and unproductive. Appropriate data was found only for Italy and United Kingdom. In the case of Italy we found out that 1% increase in public de cit decreases economic growth by 1%, 1% increase in distortive taxes decreases eco- nomic growth by 1,2% and 1% increase in productive expenses increases economic growth by 0,5%. Results of United Kingdom were biased because of the unappro- priate division of revenues and expenses. This bias shows the importance of the correct division of expenses and revenues for each country. |
| Downloadable: | Bachelor Thesis of Marečková |
