Twin Deficits: Evidence From Portugal, Italy, Spain and Greece

Artikel

Since the mid-2000s, internal and external imbalances have increased in many EU countries. This contributed to the debate over whether government budget deficits affect current account deficits, known as twin deficits hypothesis. It implies that public debt is actually a burden for future taxpayers and thus a dangerous way for budget financing. Therefore, the fiscal measures implemented by policymakers may also affect the current account. This article tests the twin deficits hypothesis for Portugal, Italy, Spain and Greece for the period 1999–2017. The empirical analysis presented in the article finds evidence that strongly supports this hypothesis only for Italy and Greece. For Portugal and Spain, however, the evidence is quite weak.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Journal: Intereconomics ; ISSN: 1613-964X ; Volume: 55 ; Year: 2020 ; Issue: 5 ; Pages: 332-338 ; Heidelberg: Springer

Classification and Topics

• Classification: Wirtschaft

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Panousis, Konstantinos P. ; Koukouritakis, Minoas
• Event: Veröffentlichung
• (who): Springer
• (where): Heidelberg
• (when): 2020

Further information

• DOI: doi:10.1007/s10272-020-0924-y
• Handle: http://hdl.handle.net/10419/231953
• Last update: 10.03.2025, 11:42 AM CET