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Sustainability in Public Finance: The Case of Lithuania 1999-2008

Pesliakaité, Jurgita (2009)
Department of Economics
Abstract
The essay discusses the long-run fiscal sustainability issues for one of the EU member states – Lithuania. Investigating properties of the public debt time series for the period 1999:1-2008:2, it is concluded that past fiscal policy in the country has been sustainable. A set of econometrical procedures was employed to analyse past fiscal time series, leading to the main conclusion that a sustainable public debt development is achieved through the total budget balance management policy. In the long-run, the control over the total budget deficits outcomes is maintained by adjusting public spending to the movements in revenue. Such a fiscal policy reaction function thus allowed the government to keep the debt-to-GDP ratio on the sustainable... (More)
The essay discusses the long-run fiscal sustainability issues for one of the EU member states – Lithuania. Investigating properties of the public debt time series for the period 1999:1-2008:2, it is concluded that past fiscal policy in the country has been sustainable. A set of econometrical procedures was employed to analyse past fiscal time series, leading to the main conclusion that a sustainable public debt development is achieved through the total budget balance management policy. In the long-run, the control over the total budget deficits outcomes is maintained by adjusting public spending to the movements in revenue. Such a fiscal policy reaction function thus allowed the government to keep the debt-to-GDP ratio on the sustainable path. (Less)
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@misc{1396066,
  abstract     = {The essay discusses the long-run fiscal sustainability issues for one of the EU member states – Lithuania. Investigating properties of the public debt time series for the period 1999:1-2008:2, it is concluded that past fiscal policy in the country has been sustainable. A set of econometrical procedures was employed to analyse past fiscal time series, leading to the main conclusion that a sustainable public debt development is achieved through the total budget balance management policy. In the long-run, the control over the total budget deficits outcomes is maintained by adjusting public spending to the movements in revenue. Such a fiscal policy reaction function thus allowed the government to keep the debt-to-GDP ratio on the sustainable path.},
  author       = {Pesliakaité, Jurgita},
  keyword      = {Budget deficit; Public debt; Sustainability; Fiscal policy; Lithuania,Economics, econometrics, economic theory, economic systems, economic policy,Nationalekonomi, ekonometri, ekonomisk teori, ekonomiska system, ekonomisk politik},
  language     = {eng},
  note         = {Student Paper},
  title        = {Sustainability in Public Finance: The Case of Lithuania 1999-2008},
  year         = {2009},
}