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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}},
  language     = {{eng}},
  note         = {{Student Paper}},
  title        = {{Sustainability in Public Finance: The Case of Lithuania 1999-2008}},
  year         = {{2009}},
}