Deficit sustainability and fiscal theory of price level: the case of Italy, 1861-2020.

We test sustainability of the Italian government deficit over the period 1861-2020 using the fiscal theory of the price level (FTPL). This approach takes into account monetary and fiscal policy interactions and assumes that fiscal policy may determine the price level even if monetary authorities pursue an inflation-targeting strategy. We consider a cointegrated model with multiple structural changes to characterize the sustainability of public finances and the prevalence of monetary or fiscal dominance during subperiods.

The environmental Kuznets curve and CO2 emissions in the USA : Is the relationship between GDP and CO2 emissions time varying? Evidence across economic sectors.

In this paper, we analyze the existence of the environmental Kuznets curve as reported by Kuznets (Am Econ Rev 5:1-28, 1955) by using the methodology proposed by Kejriwal and Perron (J Econ 146:59-73, 2008, J Bus Econ Stat 28:503-522, 2010) and applying Jaunky's (Energy Policy 39(3):1228-1240, 2011) specification using quarterly data from 1973:1 to 2015:2. We also allow different behaviors across time and identify it by economic sectors. Our results show the existence of the environmental Kuznets curve (EKC) in the USA only when we allow for structural breaks.