Sustainability of the Fiscal Imbalance and Public Debt Under Fiscal Policy Asymmetries in Opec

Document Type : Research Paper

Authors

1 Department of Economics, Faculty of Economics and Administrative Sciences, Mazandaran University, Babolsar

2 Economics, Faculty of Economics and Administration, University of Mazandaran, Babolsar, Iran.

3 Associate Professor in Economics, University of Mazandaran

4 University of Mazandaran

Abstract

Considering that fiscal imbalance is one of the basic problems of governments in most countries faced by governments in most countries, today the international Society places significant importance on the fiscal imbalances of countries and a low level has become one of the important indicators of public finance health. Since there is an expectation of asymmetry in the budget adjustment process;Therefore the purpose of this article was to investigates the sustainability fiscal imbalance and public debt in the conditions of asymmetric fiscal policy in OPEC during the Annual time period of 2002-2021. In this regard, to testing for sustainability of fiscal imbalance and public debt is used to method estimate symmetric Panel ARDL and asymmetric Panel NARDL.The results indicate that the fiscal imbalance and public debt is on the path of weak sustainability. The analysis of asymmetric coefficients with the estimation of the Fiscal reaction function shows that Fiscal policy stance is procyclical with strong stabilization Tendencies in economic booms and an unstable state in recessions. Against upsurges in the debt-to-GDP ratio authorities are found to pursue fiscal integration, so this situation shows a weak form of sustainability.

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Quarterly Journal of Applied Theories of Economics

Articles in Press, Accepted Manuscript
Available Online from 13 October 2024

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