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Journal of Quantitative Economics

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11-03-2019 | Original Article

Government Expenditures and Revenues in Italy in a Long-run Perspective

Authors: Gordon L. Brady, Cosimo Magazzino

Published in: Journal of Quantitative Economics | Issue 2/2019

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Abstract

The aim of this study is to investigate the sustainability of Italian public accounts using in a long-run perspective, using empirical tests on sustainability and solvency of the country’s fiscal policies. The results of unit root and stationarity tests show that government expenditures and revenues series are first-differences stationary. The empirical analysis considered both the entire period and two sub-periods (1862–1913, 1947–2013). Furthermore, we conduct tests on cointegration, which evidence that a clear long-run relationship between public expenditure and revenues emerges only for the years 1862–1913. In essence, the paper’s results reveal that Italy have sustainability problems in the republican age.

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For years 2009-2013 we used the ISTAT data, https://www.istat.it/it/prodotti/banche-dati/serie-storiche.

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Title: Government Expenditures and Revenues in Italy in a Long-run Perspective
Authors: Gordon L. Brady
Cosimo Magazzino
Publication date: 11-03-2019
Publisher: Springer India
Published in: Journal of Quantitative Economics / Issue 2/2019
Print ISSN: 0971-1554
Electronic ISSN: 2364-1045
DOI: https://doi.org/10.1007/s40953-019-00157-z

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