IDEAS home Printed from https://ideas.repec.org/p/ecb/ecbsps/201829.html
   My bibliography  Save this paper

Deficit-debt adjustment (DDA) analysis: an analytical tool to assess the consistency of government finance statistics

Author

Listed:
  • Kezbere, Linda
  • Maurer, Henri

Abstract

This statistical paper describes and explains a specific tool enabling statisticians to gain additional insights and assess the consistency of government finance statistics (GFS): analysis of the deficit-debt adjustment (DDA), or stock-flow adjustment (SFA). The DDA reconciles two key government indicators – the government deficit/surplus and government debt. DDA analysis helps to establish whether these statistics are plausible and reliable by exploring the consistency between governments’ non-financial accounts (measuring the government deficit/surplus) and financial accounts (measuring government debt at market value). It also takes into account valuation differences between the financial accounts and government debt measured at face value (Maastricht debt). Recent years’ GFS for the euro area aggregate and the individual euro area countries (and, where useful, other EU Member States’ data) are used to illustrate DDA analysis. The dataset bridging the government deficit and the change in government debt reveals many aspects of a government’s economic policies. For instance, the components of the DDA shed light on its equity investments or privatisations, its use of investment in financial reserves, some aspects of its debt management and the accumulation of fiscal or social arrears. JEL Classification: H62, H63

Suggested Citation

  • Kezbere, Linda & Maurer, Henri, 2018. "Deficit-debt adjustment (DDA) analysis: an analytical tool to assess the consistency of government finance statistics," Statistics Paper Series 29, European Central Bank.
    • Handle: RePEc:ecb:ecbsps:201829
    Note: 810301
    as

    Download full text from publisher

    File URL: https://www.ecb.europa.eu//pub/pdf/scpsps/ecb.sp29.en.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Timothy C. Irwin, 2015. "Defining The Government'S Debt And Deficit," Journal of Economic Surveys, Wiley Blackwell, vol. 29(4), pages 711-732, September.
    2. Maurer, Henri & Keweloh, Sascha, 2017. "Quality enhancements in Government Finance Statistics since the introduction of the euro - Econometric evidence," Statistics Paper Series 26, European Central Bank.
    3. Maurer, Henri & Grussenmeyer, Patrick, 2015. "Financial assistance measures in the euro area from 2008 to 2013: statistical framework and fiscal impact," Statistics Paper Series 07, European Central Bank.
    4. Grussenmeyer, Patrick & Maurer, Henri, 2015. "Financial assistance measures in the euro area from 2008 to 2013: statistical framework and fiscal impact," Statistics Paper Series 7, European Central Bank.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Bachleitner, Alena & Prammer, Doris, 2024. "Don’t blame the government!? An assessment of debt forecast errors with a view to the EU Economic Governance Review," European Journal of Political Economy, Elsevier, vol. 82(C).
    2. Bańkowski, Krzysztof, 2023. "Fiscal policy in the semi-structural model ECB-BASE," Working Paper Series 2802, European Central Bank.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Mr. Barry J. Eichengreen & Ms. Asmaa A ElGanainy & Rui Pedro Esteves & Kris James Mitchener, 2019. "Public Debt Through the Ages," IMF Working Papers 2019/006, International Monetary Fund.
    2. Charles Nolan & Plutarchos Sakellaris & John D. Tsoukalas, 2016. "Optimal Bailout of Systemic Banks," Working Papers 2016_17, Business School - Economics, University of Glasgow.
    3. Jean-Loup, Soula, 2017. "Measuring heterogeneity in bank liquidity risk: Who are the winners and losers?," The Quarterly Review of Economics and Finance, Elsevier, vol. 66(C), pages 302-313.
    4. Barry Eichengreen & Rui Esteves, 2022. "Up and away? Inflation and debt consolidation in historical perspective," Oxford Open Economics, Oxford University Press, vol. 1, pages 1-20.
    5. Ms. Deniz O Igan & Hala Moussawi & Alexander F. Tieman & Ms. Aleksandra Zdzienicka & Mr. Giovanni Dell'Ariccia & Mr. Paolo Mauro, 2019. "The Long Shadow of the Global Financial Crisis: Public Interventions in the Financial Sector," IMF Working Papers 2019/164, International Monetary Fund.
    6. Hickey, Rónán & Smyth, Diarmaid, 2015. "The Financial Crisis in Ireland and Government Revenues," Quarterly Bulletin Articles, Central Bank of Ireland, pages 60-71, October.
    7. repec:aeb:wpaper:201607:i:7:y:2016 is not listed on IDEAS
    8. Manish K. Singh & Marta Gómez-Puig & Simón Sosvilla-Rivero, 2019. "“Increasing contingent guarantees: The asymmetrical effect on sovereign risk of different government interventions"," IREA Working Papers 201914, University of Barcelona, Research Institute of Applied Economics, revised Sep 2019.
    9. Stelios Arvanitis & Alexandros Louka, 2015. "Martingale Transforms with Mixed Stable Limits and the QMLE for Conditionally Heteroskedastic Models," Working Papers 201508, Athens University Of Economics and Business, Department of Economics.
    10. Barry Eichengreen & Asmaa El-Ganainy & Rui Esteves & Kris James Mitchener, 2019. "Public Debt Through the Ages," NBER Working Papers 25494, National Bureau of Economic Research, Inc.
    11. António Afonso & José Alves, 2017. "Stock-Flow Adjustments and Interest Rates," Working Papers Department of Economics 2017/05, ISEG - Lisbon School of Economics and Management, Department of Economics, Universidade de Lisboa.
    12. Edda Claus & Iris Claus, 2015. "SAVINGS AND WEALTH ACCUMULATION: MEASUREMENT, INFLUENCES AND INSTITUTIONS[The views ]," Journal of Economic Surveys, Wiley Blackwell, vol. 29(4), pages 587-593, September.
    13. Wen Wang & Bo Zhao, 2017. "Transparency in state debt disclosure," Working Papers 17-10, Federal Reserve Bank of Boston.
    14. Lutfi Zharku, 2018. "Budget Deficits, Public Debt and Irregular Receipts: Kosovo case," Acta Universitatis Danubius. OEconomica, Danubius University of Galati, issue 14(5), pages 268-285, OCTOBER.
    15. repec:spo:wpmain:info:hdl:2441/4q63gsp61h87h81knveut4qm7m is not listed on IDEAS
    16. repec:hal:spmain:info:hdl:2441/4q63gsp61h87h81knveut4qm7m is not listed on IDEAS
    17. Timothy C. Irwin, 2015. "The whole elephant: A proposal for integrating cash, accrual, and sustainability-gap accounts," OECD Journal on Budgeting, OECD Publishing, vol. 14(3), pages 1-18.
    18. Afonso, António & Alves, José, 2019. "Short and long-term interest rate risk: The sovereign balance-sheet nexus," Finance Research Letters, Elsevier, vol. 31(C).
    19. Alberola, Enrique & Cheng, Gong & Consiglio, Andrea & Zenios, Stavros A., 2023. "Unconventional monetary policy and debt sustainability in Japan," Journal of the Japanese and International Economies, Elsevier, vol. 69(C).
    20. Stavros A. Zenios & Andrea Consiglio & Marialena Athanasopoulou & Edmund Moshammer & Angel Gavilan & Aitor Erce, 2021. "Risk Management for Sustainable Sovereign Debt Financing," Operations Research, INFORMS, vol. 69(3), pages 755-773, May.
    21. Stefano Battiston & Mattia Guerini & Mauro Napoletano & Veronika Stolbova, 2018. "Financialization in the EU and its consequences," Post-Print hal-03606070, HAL.
    22. Mickael Melki & Andrew Pickering, 2022. "Ideological polarization and government debt," International Tax and Public Finance, Springer;International Institute of Public Finance, vol. 29(4), pages 811-833, August.
    23. Enrique Alberola-Ila & Gong Cheng & Andrea Consiglio & Stavros A. Zenios, 2022. "Debt sustainability and monetary policy: the case of ECB asset purchases," BIS Working Papers 1034, Bank for International Settlements.

    More about this item

    Keywords

    consistency; data quality; government finance statistics;
    All these keywords.

    JEL classification:

    • H62 - Public Economics - - National Budget, Deficit, and Debt - - - Deficit; Surplus
    • H63 - Public Economics - - National Budget, Deficit, and Debt - - - Debt; Debt Management; Sovereign Debt

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ecb:ecbsps:201829. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Official Publications (email available below). General contact details of provider: https://edirc.repec.org/data/emieude.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.