Budget Balance And Trade Balance:Kin Or Strangers. A Case Study Of Taiwan
AbstractIn line with the deterioration of Taiwanese budget deficits, the trade surplus has also decreased. It is the ideal time to investigate the relationship between budget balances and trade balances. Unit root tests, cointegration tests, Granger causality tests and the VARs model are techniques used to test the Keynesian proposition and the Ricardian equivalence. The main findings are that Keynesian proposition is supported only by the model using data of the whole period. There is no support for the Ricardian equivalence. That budget balances and trade balances being kin or strangers varies over periods of data used.
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Bibliographic InfoPaper provided by The University of Melbourne in its series Department of Economics - Working Papers Series with number 893.
Length: 24 pages
Date of creation: 2004
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More information through EDIRC
Keynesian proposition; Ricardian equivalence; unit root tests; Grangercausality tests; VARs model;
Find related papers by JEL classification:
- H50 - Public Economics - - National Government Expenditures and Related Policies - - - General
- H62 - Public Economics - - National Budget, Deficit, and Debt - - - Deficit; Surplus
- C32 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Time-Series Models; Dynamic Quantile Regressions; Dynamic Treatment Effect Models; Diffusion Processes
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