The Accumulation of Public Debt in Canada

Kneebone, Ron; Leach, John

doi:10.2307/3552471

Cited by 2 publications

(2 citation statements)

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“…In this section we decompose the well-known identity describing the accumulation of public debt along the lines suggested by Fortin (1996) and Kneebone and Leach (2001). Fortin's objective was to disentangle the relative importance of the following three factors to debt accumulation: (i) over-generous programme spending and lax tax policy (and administration) leading to a primary deficit even if the economy is operating at potential output; (ii) primary deficits arising as a result of output being below potential (due to the influence of automatic stabilizers), either because it has been subjected to unfavourable external shocks or because stabilization policies have been inadequate; (iii) the (real) interest rate exceeding the GDP growth rate, so that the debt ratio would rise even if programme spending and revenues are equal, as new debt would have to be issued to make the interest payments on the existing debt.…”

Section: Debt and Deficit Decompositionmentioning

confidence: 99%

“…Would it be sensible to assume, in this case, that a responsible government should aim for programme spending to be equal to revenue (i.e., for a zero structural component)? Kneebone and Leach (2001) have suggested that if the period is long enough then the debt ratio could rise significantly even if the structural component is zero…”

Section: Debt and Deficit Decompositionmentioning

confidence: 99%

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Whither Public Interest: The Case of Greece's Public Finances

Moutos¹,

Tsitsikas²

2010

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Standard-Nutzungsbedingungen:Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden.Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich machen, vertreiben oder anderweitig nutzen.Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, gelten abweichend von diesen Nutzungsbedingungen die in der dort genannten Lizenz gewährten Nutzungsrechte. During the last three decades there has been an almost continuous undermining of the public interest by private interests operating either outside or inside Greek public administration. The result of this infiltration has been a gradual loss of bureaucratic autonomy to pursue the public interest. The web of relationships developed between private interests and the two dominant political parties have eroded both the efficacy of public administration and the dynamism of the private sector as incumbent firms and public (or quasi-public) sector functionaries have been using their power to prevent the birth of new firms and to raid the state coffers. The upshot of these have been the emergence of permanently large budget and current account deficits, which have in turn driven Greece's foreign indebtedness to alarming levels, necessitating the current bailout by the EU/ECB/IMF. JEL-Code: E21, H11, H41, H62, H63. Terms of use: Documents in

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Section: Debt and Deficit Decompositionmentioning

confidence: 99%

Section: Debt and Deficit Decompositionmentioning

confidence: 99%