Testing the Existence of Ricardian or Non-Ricardian Regimes for CIS Countries

Abstract

It is important to determine the dominant fiscal regime in a country group for policy prevision. This paper examines whether the Ricardian fiscal regime or non-Ricardian fiscal regime is dominant in the Common Wealth of Independent States (CIS). We attempted to show that CIS’ behavior after the debt stock increase. Using panel data method, this paper finds that Ricardian regime dominates in Kyrgyz Republic, Russian Federation, Tajikistan, Uzbekistan, Moldova and Turkmenistan’s fiscal policies.

Keywords

• CIS
• Panel Data Analysis
• Common Correlated Effect Model
• Debt Stock
• Ricardian Fiscal Regime