Záznam přidán/aktualizován: 11. března 2022 v 09.53 hod.
Budget Deficit Sustainability: An Application to Turkey
Zuhal Ergen, Esin Güzhan
Prague Economic Papers 2022, 31(1):3-24
In this study, sustainability of budget deficits in Turkey is examined empirically for the pe- riod from January 2006 to September 2020, using time series techniques based on monthly data, under the intertemporal budget constraint approach. In the analysis phase, the Johansen cointegration method was used for the long-term relationship of the series. Analysis results indicated that income and expenditure series are not cointegrated. It is concluded that budget policies for the period under consideration in Turkey are unsustainable; therefore, the applied fiscal policies should be reviewed.
Efficiency Measurement and Inefficiency Environmental Factors of China's Green Economy
Xiaoli Qin, Jingzheng Wang, Yiping Liu
Prague Economic Papers 2022, 31(1):25-57
This paper uses the projection pursuit method (PP method) to construct a comprehensive output indicator and uses the heterogeneous stochastic frontier model (HSFM model) to calculate China's green economy efficiency and analyse effects of environmental factors on the inefficiency fluctuation of green economy. Conclusions are drawn as follows: (1) The average value of China's green economy efficiency is generally low, and a regional heterogeneity of green economy efficiency is obvious. (2) For the overall inefficiency fluctuation of China's green economy, openness has a significant inhibitory effect; the industrialization level and technological...
Role of Uncertainty in Debt-Growth Nexus
Mindaugas Butkus, Diana Cibulskiene, Lina Garsviene, Janina Seputiene
Prague Economic Papers 2022, 31(1):58-78
This paper analyses uncertainty as one of the factors that affect the public debt-growth nexus. We put forward a hypothesis that uncertainty mediates the effect of public debt on economic growth. The empirical examination of the mediating effect is based on the neoclassical growth equation and consistent with specifications previously used to analyse the sources of heterogeneity in the debt-growth relationship. Since one part of the uncertainty is financial risk, which is closely related to the financial sector stability, we use interest rate spread as a main variable, and the risk premium on lending as an alternative one to proxy financial risk and...
Paradox of Excess Liquidity in European Emerging and Transition Economies
Albulenë Kastrati
Prague Economic Papers 2022, 31(1):79-114
European emerging and transition economies are in immense need of investments and renewal of capital, yet they produce a considerable amount of unutilized resources. In particular, banks hold excess liquidity in the face of seemingly profitable lending opportunities. Is it a demand-side or supply-side problem or is this region entirely different and have we been working under the wrong paradigm? This study creates a new estimate of excess liquidity by taking into account banks' overall liquidity position. Breaking down precautionary from involuntary excess liquidity, a significant presence of the latter is evident. A part of the story...