Özet:
Fiscal stability relationship that continues between government revenues and
expenditures is one of the important necessities for sustainable fiscal environment.
Determining the fiscal sustainability within the process is crucial with regard to satisfying the
fiscal balances. This paper tests the sustainability of fiscal policy using the relationship
between government revenues and expenditures for eleven OECD countries covering the
period 1980-2009 with panel cointegration methods. The results show that the sustainability
of fiscal policies for these countries is not sustainable in the long term and it appears that the
governments’ behaviours are not coherent to their intertemporal budget constraints.