Open Access Article SciPap-933
What Determines the Fiscal Consolidation Process: The Analysis Within European Member Countries
by Lucia Mihóková 1,*, Lucia Sláviková 2 and Oľga Kmeťová 3

1 Faculty of Economics, Department of Finance, Technical University of Košice, Němcovej 32, Košice 04001, Slovakia

2 , T-Systems Slovakia, s.r.o., Žriedlová 13, Košice 04001, Slovakia

3 Faculty of Business Economics with seat in Košice, Department of Corporal Financial Management, University of Economics in Bratislava, Tajovského 13, Košice 041 30, Slovakia

* Authors to whom correspondence should be addressed.

Abstract: The fiscal consolidation process is determined by many factors of economic, monetary, political or fiscal environment. The paper is focused on analysis and assessment of selected determinants on the attributes of fiscal consolidation process within European Union member countries. The purpose of this paper is to study relations between macroeconomic, fiscal, political and other determinants using methods of quantitative economy. Analysis is focused on the duration, length and intensity of fiscal consolidation episodes and the quantification of their impact polarity. The paper identifies statistically significant determinants that can affect the success of a fiscal consolidation. The research results of performed panel regression analysis within time period 1995-2016 within EU member countries pointed out that macroeconomic and fiscal conditions are significant for the whole consolidation process and to all its attributes. The paper was developed within the project VEGA 1/0967/15.

Keywords: Duration, Length And Intensity Of Consolidation, Fiscal Consolidation Episodes, Determinants Of Consolidation, Panel Regression Model, EU Member Countries

JEL classification:   H30 - General,   H81 - Governmental Loans • Loan Guarantees • Credits • Grants • Bailouts,   H87 - International Fiscal Issues • International Public Goods

SciPap 2018, 26(2), 933

Received: 19 January 2018 / Accepted: 27 June 2018 / Published: 23 August 2018