CORRELATION ANALYSIS BETWEEN THE PUBLIC DEBT AND THE BUDGET DEFICIT AND GDP IN ROMANIA COMPARED TO SWEDEN

Abstract

The modality in which the state manages the public debt has always represented and will continue to represent a subject of real importance, and the discussions regarding the level of budget deficit, the indebtedness degree and its implications on the social wellness are representing a big actuality at national level as also at European Union level. In this paper is presented a comparative analysis between Romania and Sweden in what regards the dependence between public debt and budget deficit and its GDP, as also the real public debt’s variation in time series for Romania and Sweden, in tandem with the variation in time of ARX model, highlighting the residuum.

Keywords

• public debt
• budget deficit
• GDP.