📝 Rate this literary masterpiece! 📚 Add to "I'll read it someday" pile 🏠 Give it a cozy shelf spot 🛒 Buy this book!

📖 The Scoop

This paper considers the impact of changes in the payment discipline of governments on the private sector. We argue that increased delays in public payments can affect private sector liquidity and profits and hence ultimately economic growth. We test this prediction empirically for European Union countries using two complementary approaches. First, we use annual panel data, including a newly constructed proxy for government arrears. We find that payment delays and to some extent estimated arrears lead to a higher likelihood of bankruptcy, lower profits, and lower economic growth. However, while this approach allows a broad set of variables to be included, it restricts the number of time periods. We therefore complement it with a Bayesian VAR approach on quarterly data for selected countries faced with significant payment delays. We again find that the likelihood of bankruptcies rises when governments increase the average payment period.

Genre: Business & Economics / Exports & Imports (fancy, right?)

🤖Next read AI recommendation

Greetings, bookworm! I'm Robo Ratel, your AI librarian extraordinaire, ready to uncover literary treasures after your journey through "Governments’ Payment Discipline" by Cristina Checherita-Westphal! 📚✨

Eureka! I've unearthed some literary gems just for you! Scroll down to discover your next favorite read. Happy book hunting! 📖😊

Reading Playlist for Governments’ Payment Discipline

Enhance your reading experience with our curated music playlist. It's like a soundtrack for your book adventure! 🎵📚

🎶 A Note About Our Spotify Integration

Hey book lovers! We're working on bringing you the full power of Spotify integration. 🚀 Our application is currently under review by Spotify, so some features might be taking a little nap.

Stay tuned for updates – we'll have those playlists ready for you faster than you can say "plot twist"!