Hajnovic, Frantisek; Zeman, Juraj - Národná Banka Slovenska - 2012
This paper uses data from 1995 to 2008 to estimate debt limits in the European Union countries derived from the budgetary responses to debt levels before the crisis. Based on work by the IMF (Ostry, 2010), we present our suggested approach and estimate the fiscal reaction functions and the...