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The Long Shadow of “Austrokeynesianism”? Public Debt Sustainability in Austria

Author:
Reinhard Neck   Gottfried Haber  


Issue Date:
2009


Abstract(summary):

This paper analyzes whether Austrian fiscal policies have been sustainable during the last four decades. We give an introduction to Austrian fiscal policy, emphasizing its macroeconomic orientation, especially during the period called Austrokeynesianism . Next, several econometric approaches to test for the sustainability of fiscal policies are applied to Austrian data. Most of these tests indicate that Austrian fiscal policies were sustainable in the period 1960 1974, while from 1975 2003, public debt grew much more rapidly, although (at least weak) sustainability of its development cannot be ruled out.


Page:
31


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