6533b7dbfe1ef96bd12705f5
RESEARCH PRODUCT
Threshold Effects in the U.S. Budget Deficit. ECONOMIC INQUIRY
Arestis P.Fattouh B.Andrea Cipollinisubject
intertemporal solvencythreshold cointegrationdescription
We contribute to the debate on whether the U.S. large federal budget deficits are sustainable in the long run. We model the U.S. government deficit per capita as a threshold autoregressive process. We find evidence that the U.S. budget deficit is sustainable in the long run and that economic policy makers will only intervene to reduce per capita deficit when it reaches a certain threshold.
| year | journal | country | edition | language |
|---|---|---|---|---|
| 2004-01-01 |