Sustainability of Regional Government Debt in Czech Republic
The result's identifiers
Result code in IS VaVaI
<a href="https://www.isvavai.cz/riv?ss=detail&h=RIV%2F60076658%3A12510%2F17%3A43896269" target="_blank" >RIV/60076658:12510/17:43896269 - isvavai.cz</a>
Result on the web
<a href="http://dx.doi.org/10.18267/pr.2017.fin.2242.5" target="_blank" >http://dx.doi.org/10.18267/pr.2017.fin.2242.5</a>
DOI - Digital Object Identifier
<a href="http://dx.doi.org/10.18267/pr.2017.fin.2242.5" target="_blank" >10.18267/pr.2017.fin.2242.5</a>
Alternative languages
Result language
angličtina
Original language name
Sustainability of Regional Government Debt in Czech Republic
Original language description
Analysis of debt sustainability at the level of subnational government is not very frequent, however, it gained importance with the increased concern about government debt sustainability in the wake of the recent economic crisis. The aim of the paper is to test the sustainability of regional government debt in Czech Republic. Czech regional governments have been established in the year 2000, thus having rather short history of operation. Nevertheless, their rising debt is a source of concern. The analysis concludes that the level of debt ratio is low, however it is rapidly rising. The unit root tests suggest that the non-stationarity cannot be ruled out for debt ratio of regional governments and that the debt variable cannot be considered as mean reverting. This conclusion in further supported by the result of the dynamic panel regression analysis, where the lagged debt ratio coefficient has a negative sign and is statistically significant in two specifications. Therefore, it is unlikely that the debt sustainability condition postulated by Bohn (1998) is met by Czech regional government budgetary behavior.
Czech name
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Czech description
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Classification
Type
D - Article in proceedings
CEP classification
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OECD FORD branch
50202 - Applied Economics, Econometrics
Result continuities
Project
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Continuities
I - Institucionalni podpora na dlouhodoby koncepcni rozvoj vyzkumne organizace
Others
Publication year
2017
Confidentiality
S - Úplné a pravdivé údaje o projektu nepodléhají ochraně podle zvláštních právních předpisů
Data specific for result type
Article name in the collection
Theoretical and Practical Aspects of Public Finance 2017
ISBN
978-80-245-2242-5
ISSN
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e-ISSN
neuvedeno
Number of pages
7
Pages from-to
127-133
Publisher name
Oeconomica
Place of publication
Praha
Event location
Praha VŠE
Event date
Apr 7, 2017
Type of event by nationality
WRD - Celosvětová akce
UT code for WoS article
000456193700019