Fiscal sustainability in emerging countries: Evidence from Iran and Turkey

This paper investigates the fiscal sustainability of two emerging countries – Iran (an oil-producing country) and Turkey (an agricultural country) – for both stochastic and non-stochastic environments. Cointegration and multicointegration methodologies were used to evaluate fiscal budgeting processe...

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Bibliographic Details
Published inJournal of policy modeling Vol. 30; no. 6; pp. 957 - 972
Main Author Kia, Amir
Format Journal Article
LanguageEnglish
Published New York Elsevier Inc 01.11.2008
Elsevier
Elsevier Sequoia S.A
SeriesJournal of Policy Modeling
Subjects
Budgeting
Cointegration analysis
Economic models
Fiscal policy
Fiscal sustainability
Fiscal sustainability Multicointegration and tax smoothing
Iran
Multicointegration and tax smoothing
Public debt
Public expenditure
Public finance
Studies
Sustainability
Turkey
Iran
Turkey
E62
H60
C32
Multicointegration and tax smoothing
Fiscal sustainability
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Summary:This paper investigates the fiscal sustainability of two emerging countries – Iran (an oil-producing country) and Turkey (an agricultural country) – for both stochastic and non-stochastic environments. Cointegration and multicointegration methodologies were used to evaluate fiscal budgeting processes in these countries. A model for testing the sustainability of a fiscal policy, based on Barro's tax smoothing, was also developed to test the Iranian fiscal policy. It was found that the fiscal budgeting process in both countries is not sustainable. Furthermore, the Iranian fiscal policy, as far as oil and gas income is concerned, is not a fully responsible policy.
Bibliography:ObjectType-Article-2
SourceType-Scholarly Journals-1
ObjectType-Feature-1
content type line 23
ISSN:0161-8938
1873-8060
DOI:10.1016/j.jpolmod.2008.01.004