Abstract
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.
Lingua originale | English |
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pagine (da-a) | 214-222 |
Numero di pagine | 9 |
Rivista | Economic Inquiry |
Volume | 42 |
Stato di pubblicazione | Published - 2004 |
All Science Journal Classification (ASJC) codes
- ???subjectarea.asjc.1400.1400???
- ???subjectarea.asjc.2000.2002???