6533b839fe1ef96bd12a5931
RESEARCH PRODUCT
Threshold Effects in the US Budget Deficit
Philip ArestisPhilip ArestisAndrea CipolliniAndrea CipolliniBassam FattouhBassam Fattouhsubject
GovernmentDeficit spendingEconomic policyPer capitaEconomicsMonetary economicsUnit rootFederal budgetdescription
We contribute to the debate on whether the large U.S. 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 policymakers will intervene to reduce per capita deficit only when it reaches a certain threshold.
| year | journal | country | edition | language |
|---|---|---|---|---|
| 2003-01-01 | SSRN Electronic Journal |