FISCAL CONVERGENCE IN THE EUROPEAN UNION BEFORE THE CRISIS | Zendy

BERTARELLI SILVIA | Zendy; CENSOLO ROBERTO | Zendy; COLOMBO CATERINA | Zendy

AI Assistant Blog Pricing

Home ZAIA Blog

Premium

FISCAL CONVERGENCE IN THE EUROPEAN UNION BEFORE THE CRISIS

Author(s) -

BERTARELLI SILVIA,

CENSOLO ROBERTO,

COLOMBO CATERINA

Publication year - 2014

Publication title -

contemporary economic policy

Language(s) - English

Resource type - Journals

SCImago Journal Rank - 0.454

H-Index - 49

eISSN - 1465-7287

pISSN - 1074-3529

DOI - 10.1111/coep.12073

Subject(s) - convergence (economics) , economics , european union , harmonization , international economics , fiscal union , government revenue , european debt crisis , government spending , macroeconomics , revenue , fiscal policy , government expenditure , monetary economics , deficit spending , government (linguistics) , debt , european integration , public finance , finance , market economy , welfare , physics , acoustics , linguistics , philosophy

This article investigates fiscal convergence attained by EU countries in the period 1991–2008, by employing β‐ and σ‐convergence techniques complemented by a time series analysis. Overall our results highlight a distinctive convergence pattern in the European Union. Fiscal discipline leading to a fast convergence of deficit/ GDP ratio over the 1990s markedly weakened in the following decade. Nonetheless, after the Euro debut a pronounced convergence in total revenue and total government spending emerges, with different patterns characterizing each expenditure component. Despite this evidence of fiscal harmonization, European treaties failed to attract countries toward a common share of government debt over GDP . ( JEL E61, H11 , C23 )

This content is not available in your region!

Continue researching here.

Having issues? You can contact us here

Accelerating Research