Sustainability of Regional Government Debt in Czech Republic

Kód výsledku v 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>

Výsledek na webu

<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>

Jazyk výsledku

angličtina

Název v původním jazyce

Sustainability of Regional Government Debt in Czech Republic

Popis výsledku v původním jazyce

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.

Název v anglickém jazyce

Sustainability of Regional Government Debt in Czech Republic

Popis výsledku anglicky

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.

Druh

D - Stať ve sborníku

CEP obor

—

OECD FORD obor

50202 - Applied Economics, Econometrics

Projekt

—

Návaznosti

I - Institucionalni podpora na dlouhodoby koncepcni rozvoj vyzkumne organizace

Rok uplatnění

2017

Kód důvěrnosti údajů

S - Úplné a pravdivé údaje o projektu nepodléhají ochraně podle zvláštních právních předpisů

Název statě ve sborníku

Theoretical and Practical Aspects of Public Finance 2017

ISBN

978-80-245-2242-5

ISSN

—

e-ISSN

neuvedeno

Počet stran výsledku

7

Strana od-do

127-133

Název nakladatele

Oeconomica

Místo vydání

Praha

Místo konání akce

Praha VŠE

Datum konání akce

7. 4. 2017

Typ akce podle státní příslušnosti

WRD - Celosvětová akce

Kód UT WoS článku

000456193700019