New evidence on the remedies of the Greek sovereign debt problem

Apergis, Nicholas and Cooray, Arusha (2013) New evidence on the remedies of the Greek sovereign debt problem. GreeSE: Hellenic Observatory papers on Greece and Southeast Europe (79). Hellenic Observatory, London School of Economics and Political Science, London, UK.

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Abstract

The goal of the present paper is to investigate not only the dynamics of the Greek public debt, but also what are the appropriate measures required for achieving fiscal consolidation. The empirical estimation is carried out using a macroeconomic dataset spanning the period 1980-2008 and both the 3SLS methodological approach on a theoretical model and the structural VAR methodology to perform forecast tests and to calibrate the future paths of the public debt variable up to 2020. The results suggest that only an aggressive growth policy could permit the country to achieve debt sustainability. The results are expected to have important implications to policy makers for designing effective macroeconomic policy in terms of achieving sustainable levels of public debt.

Item Type:	Monograph (Discussion Paper)
Official URL:	http://www.lse.ac.uk/europeanInstitute/research/he...
Additional Information:	© 2013 The Authors
Divisions:	European Institute Hellenic Observatory
Subjects:	J Political Science > JA Political science (General) J Political Science > JN Political institutions (Europe)
JEL classification:	C - Mathematical and Quantitative Methods > C3 - Econometric Methods: Multiple; Simultaneous Equation Models; Multiple Variables; Endogenous Regressors > C30 - General C - Mathematical and Quantitative Methods > C5 - Econometric Modeling > C51 - Model Construction and Estimation E - Macroeconomics and Monetary Economics > E2 - Consumption, Saving, Production, Employment, and Investment > E27 - Forecasting and Simulation E - Macroeconomics and Monetary Economics > E6 - Macroeconomic Policy Formation, Macroeconomic Aspects of Public Finance, Macroeconomic Policy, and General Outlook > E62 - Fiscal Policy; Public Expenditures, Investment, and Finance; Taxation
Date Deposited:	14 Jan 2014 11:26
Last Modified:	11 Dec 2024 19:11
URI:	http://eprints.lse.ac.uk/id/eprint/55266

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