THIS IS THE DEV/TESTING WEBSITE IPv4: 18.118.9.9 IPv6: || Country by IP: GB
Journals
Resources
About Us
Open Access

Anwendung des Nachhaltigkeitsansatzes von Bohn zur Etablierung eines Frühindikators in den öffentlichen Finanzen. Beitrag zur aktuellen Debatte der Föderalismuskommission II

Year:    2010

Author:    Herzog, Bodo

Credit and Capital Markets – Kredit und Kapital, Vol. 43 (2010), Iss. 2 : pp. 183–206

Abstract

Application and Development of a Lending-Indicator in Public Finance Based on Bohn's Sustainability Approach

The question of whether public debt in Europe's largest economy is sustainable in the long run has received great attention. After all, Germany breached the three percent deficit threshold of the „Stability and Growth Pact" in four successive years, i. e. from 2002 to 2005. In this paper I investigate whether German public finances – Federal and all State governments – have been sustainable during the last four decades. This means finding answers to the following questions: How have German governments reacted to the accumulation of approximately 1.5 billion euro of debt? Have they taken corrective action, or have they let the debt grow? Closer empirical discussion of these questions is also important because of the recent political discussion and new institutional proposals to limit future debt policy by the federal commission („Föderalismuskommission"). My paper is the first to empirically analyse the sustainability of fiscal policy in Federal Government („Bund") and the Federal States („Länder"). I analyse debt behaviour in Germany on the basis of a unique and newly constructed data sample covering 1970 to 2005. The results are surprising: Fiscal policy is far more sustainable than originally supposed. My paper is the first to apply Bohn's sustainability criteria to Germany and two Federal States – Baden-Württemberg and Berlin.

Journal Article Details

Publisher Name:    Global Science Press

Language:    German

DOI:    https://doi.org/10.3790/kuk.43.2.183

Credit and Capital Markets – Kredit und Kapital, Vol. 43 (2010), Iss. 2 : pp. 183–206

Published online:    2010-04

AMS Subject Headings:    Duncker & Humblot

Copyright:    COPYRIGHT: © Global Science Press

Pages:    24

Author Details

Herzog, Bodo

  1. (Un-)Sustainability of Public Finances in German Laender: A Panel Time Series Approach

    Burret, Heiko T. | Feld, Lars P. | Köhler, Ekkehard A.

    Economic Modelling, Vol. 53 (2016), Iss. P.254

    https://doi.org/10.1016/j.econmod.2015.12.001 [Citations: 9]
  2. Fiscal Transfers and Fiscal Sustainability

    POTRAFKE, NIKLAS | REISCHMANN, MARKUS

    Journal of Money, Credit and Banking, Vol. 47 (2015), Iss. 5 P.975

    https://doi.org/10.1111/jmcb.12231 [Citations: 21]
  3. Modeling fiscal sustainability in dynamic macro-panels with heterogeneous effects: evidence from German federal states

    Feld, Lars P. | Köhler, Ekkehard A. | Wolfinger, Julia

    International Tax and Public Finance, Vol. 27 (2020), Iss. 1 P.215

    https://doi.org/10.1007/s10797-019-09548-7 [Citations: 8]
  4. Sustainable Consumer Tax Evasion Theory under Information Inattention

    Herzog, Bodo

    Sustainability, Vol. 13 (2021), Iss. 2 P.562

    https://doi.org/10.3390/su13020562 [Citations: 0]