In this paper, we analyse the relationship between public primary deficit and debt for Italian sustainability over the 1862–2013 years. Our empirical strategy uses the wavelet analysis. The empirical evidence suggests the presence of a substantial fiscal sustainability in the long run for Italy. This reversed much of the results of previous empirical literature, due to traditional time series approach and a shorter time horizon.
No takes yet. Share an insight, caveat, or question.
Magazzino et al. (2019) studied this question.
Synapse has enriched 5 related papers. Consider them for comparative context: