An Econometric Estimation of Public Finances in Greece and its Effect on Society
Karamitrou, M. & Markou, A.
Abstract:
In this paper is conducted a study on the procedure of Greece’s public finances, using three indicators that reflect the future fiscal condition of this country and the impact that will have on society. The indicators we used are: Public Debt (as percentage of G.D.P.), Current Account Balance (as percentage of G.D.P.) and Indirect Taxes (as share of G.D.P.). The estimations were made with the use of econometric models for the period 2013 to 2017.Along with the estimation of Public Debt (as percentage of G.D.P.), we proceed to an estimation of primary surplus/deficit of the country. Afterwards we present estimated data related to unemployment, direct taxes and inflation, presenting the relationship with the indicators that were estimated. The case of Greece has all the background makings for a complete experiment, presenting an economy with a large public debt. A small economy like Greece which has a relatively small manufacturing and industrial sector and deep recession, should address the big problems of debt accumulation. To accomplish this, Greece will not avoid the solution of the lending and finding revenue through increased taxation. In the end we make some useful conclusions Greece’s next day and prospect for a sustainable and competitive economy.
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APA citation
- Karamitrou, M. & Markou, A. (2014). An Econometric Estimation of Public Finances in Greece and its Effect on Society. International Journal of Business and Management, II(2), 25–48.