Investigating Government lending during an economic crisis
A comparative analysis of four EU countries
Bibliographic Data
| ID | 6145455 |
|---|---|
| Authors | Νικόλαος Αποστολόπουλος (0000-0002-7027-140X, Neapolis University Pafos, corresponding author), Marios Psychalis (0000-0002-8014-7007, University of Peloponnese), Panagiotis Liargovas (0000-0002-2570-0156, University of Peloponnese), Victoria Pistikou (0000-0002-3773-0109, Democritus University of Thrace) |
| Year | 2021 |
| Volume | 23 |
| Issue | 4 |
| Pages | 548-562 |
| Publication date | 2021-03-04 |
| Peer Reviewed | Yes |
| Open Access | No |
| Type | ARTICLE |
| Venue | European Politics and Society (JOURNAL) |
| Journal identifiers | ISSN: 2374-5126 • E-ISSN: 2374-5118 |
| Publisher | Taylor & Francis (PUBLISHER • GB) |
| DOI | 10.1080/23745118.2021.1895558 |
| OpenAlex | W3134470176 |
| Language | EN |
| Citations received | 1 |
| References cited | 57 |
Many economists argue that fiscal balance (i.e. preventing fiscal deficits and establishing rules for government lending) positively affects the growth rate. Several studies document a strong correlation between these two variables based on the Ricardian equivalence theorem and the crowding-out effect. It may be argued that high growth rates lead to a positive fiscal balance, while lower/negative growth rates lead to deficits (but not vice versa). This study examines this cause-and-effect relationship via a sample of four EU countries that have been affected by the economic crisis. Specifically, a Granger causality analysis captures the linear interdependencies among multiple time series to determine the causal relation between the budget deficit and the GDP growth rates for Greece, Italy, Spain, and Portugal. The results show that no clear rule governs the cause-and-effect relationship between the GDP growth rates and net government lending rates (as a percentage of GDP). Moreover, the literature supports the idea that fiscal improvement may lead to economic growth, while improving net government lending leads to an increase in the GDP growth rate. This study suggests some useful fiscal policies to apply during a crisis. Also, investigating government lending can be useful in a post-COVID-19 economic environment
Causality (physics · Crowding out · Deficit spending · Econometrics · Economics · Fiscal policy · Government (linguistics · Granger causality · Interdependence · Macroeconomics · Monetary economics · Political science · Real gross domestic product · Ricardian equivalence · Fiscal Policies and Political Economy · Fiscal Policy and Economic Growth · Housing Market and Economics
Public debt and growth
Fiscal policy and growth
Investigating Causal Relations by Econometric Models and Cross-spectral Methods
The effect of fiscal deficit on economic growth in an emerging economy
Fiscal policy and growth in a small emerging economy
Phillips Curve
Exploring Government Budget Deficit and Economic Growth
The growth effects of fiscal policy in Greece 1960–2000
Public Debt and Growth
Fiscal Policy and Financial Markets
Fiscal reforms in the EMU
European integration and asymmetric power
| Unique citing works | 1 |
|---|---|
| Citations per year | 0,2 |
| Citation span | 2021 - 2021 (1) |
| Citation velocity | historical |
| Highly cited | No |
| Citation types | Neutral: 1 |