The determinants of public deficit volatility

Sousa, R

Research output: Chapter in Book/Report/Conference proceedingChapter

Abstract

This paper empirically analyzes the political, institutional and economic sources of public deficit volatility. Using the system-GMM estimator for linear dynamic panel data models and a sample of 125 countries analyzed from 1980 to 2006, we show that higher public deficit volatility is typically associated with higher levels of political instability and less democracy. In addition, public deficit volatility tends to be magnified for small countries, in the outcome of hyper-inflation episodes and for countries with a high degree of openness.
Original languageEnglish
Title of host publicationWORKING PAPER SERIES-EUROPEAN CENTRAL BANK
Pages-
Number of pages26
Volume2009
Publication statusPublished - 2009

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Public deficit
Hyperinflation
GMM estimator
Small countries
Openness
System-GMM
Democracy
Political instability
Dynamic panel data model
Economics

Cite this

Sousa, R (2009). The determinants of public deficit volatility. In WORKING PAPER SERIES-EUROPEAN CENTRAL BANK (Vol. 2009, pp. -)

The determinants of public deficit volatility. / Sousa, R.

WORKING PAPER SERIES-EUROPEAN CENTRAL BANK. Vol. 2009 2009. p. -.

Research output: Chapter in Book/Report/Conference proceedingChapter

Sousa, R 2009, The determinants of public deficit volatility. in WORKING PAPER SERIES-EUROPEAN CENTRAL BANK. vol. 2009, pp. -.
Sousa, R. The determinants of public deficit volatility. In WORKING PAPER SERIES-EUROPEAN CENTRAL BANK. Vol. 2009. 2009. p. -
Sousa, R. / The determinants of public deficit volatility. WORKING PAPER SERIES-EUROPEAN CENTRAL BANK. Vol. 2009 2009. pp. -
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