(Un-)Sustinability of public finances in German Laender: A panel time series approach

This paper provides evidence that most German states (Laender) have unsustainable public finances by exploiting a newly compiled database covering the years 1950-2011. Although the Laender are closely intertwined we are the first to apply 'second generation' panel techniques that control for correlation among the Laender. A unique identification strategy for the selection of relevant sub-panels improves the robustness of the tests.

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Year of publication:	2015
Authors:	Burret, Heiko T. ; Feld, Lars P. ; Köhler, Ekkehard A.
Publisher:	Freiburg i. Br. : Albert-Ludwigs-Universität Freiburg, Institut für Allgemeine Wirtschaftsforschung, Abteilung für Wirtschaftspolitik und Ordnungsökonomik
Subject:	Fiscal Sustainability \| Federalism \| Panel Cointegration \| Cross Dependence

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Series:	Freiburger Diskussionspapiere zur Ordnungsökonomik ; 15/09
Type of publication:	Book / Working Paper
Type of publication (narrower categories):	Working Paper
Language:	English
Other identifiers:	844419079 [GVK] hdl:10419/125453 [Handle] RePEc:zbw:aluord:1509 [RePEc]
Classification:	E62 - Fiscal Policy; Public Expenditures, Investment, and Finance; Taxation ; H62 - Deficit; Surplus ; H77 - Intergovernmental Relations; Federalism ; H72 - State and Local Budget and Expenditures
Source:	EconStor

Persistent link: https://www.econbiz.de/10011405059