The study assesses the sustainability of public finance in CEE countries using stationary and cointegration analysis. Data series properties were analyzed to determine their stationarity using the LLC and IPS unit root tests which resulted that the series are integrated of order one. By applying Kao and Perroni panel cointegration tests a relationship between government revenue and government expenditure has been founded. The causality tests indicate that there is a bidirectional causal relationship between government expenditure and revenues in both the long and the short run and Fiscal synchronization hypothesis is confirmed
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