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

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 an major actuality at national level and also at European Union level. In this paper it is presented a comparative analysis between Romania and Holland 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 Holland, in tandem with the variation in time of ARX model, highlighting the residuum.

Keywords

• public debt
• budget deficit
• GDP