Sustainability in Public Finance: The Case of Lithuania 1999-2008
The essay discusses the long-run fiscal sustainability issues for one of the EU member states – Lithuania. Investigating properties of the public debt time series for the period 1999:1-2008:2, it is concluded that past fiscal policy in the country has been sustainable. A set of econometrical procedures was employed to analyse past fiscal time series, leading to the main conclusion that a sustainab