IDEAS home Printed from https://ideas.repec.org/
MyIDEAS: Login to save this article or follow this journal

The Budget Deficit and the Trade Deficit: Insights into This Relationship

  • Nazma Latif-Zaman

    (Providence College)

  • Maria N. DaCosta

    (University Wisconsin, Eau Claire)

Registered author(s):

    This paper addresses the issue of concomitant high budget and trade deficits in the United States. Is it just a coincidence or is there any systematic relationship? The paper employs a bi-error criterion with quarterly data for the U.S. to determine whether a causal relationship exists between trade deficit and budget deficit. The empirical analysis indicate that the trade and budget deficit are related and also finds support for the conventional prpoposition that high budget deficits have caused high trade deficits. However, results do not suggest any feed back from trade to budget deficit. Consequently, budget deficit plays an important role in the budget-trade relationship.

    If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.

    File URL: http://college.holycross.edu/RePEc/eej/Archive/Volume16/V16N4P349_354.pdf
    Download Restriction: no

    Article provided by Eastern Economic Association in its journal Eastern Economic Journal.

    Volume (Year): 16 (1990)
    Issue (Month): 4 (Oct-Dec)
    Pages: 349-354

    as
    in new window

    Handle: RePEc:eej:eeconj:v:16:y:1990:i:4:p:349-354
    Contact details of provider: Postal: c/o Dr. Alexandre Olbrecht, The Anisfield School of Business 205, Ramapo College, 505 Ramapo Valley Road, Ramapo, New Jersey 07430, USA
    Phone: (201) 684-7346
    Web page: http://www.ramapo.edu/eea/journal.html
    Email:


    More information through EDIRC

    References listed on IDEAS
    Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:

    as in new window
    1. Cebula, Richard J, 1991. "Federal Government Budget Deficits and Interest Rates: Reply," Public Finance = Finances publiques, , vol. 46(2), pages 331-34.
    2. Michael Hutchison & Charles Pigott, 1984. "Budget deficits, exchange rates and the current account: theory and U. S. evidence," Economic Review, Federal Reserve Bank of San Francisco, issue Fall, pages 5-25.
    3. Granger, C W J, 1969. "Investigating Causal Relations by Econometric Models and Cross-Spectral Methods," Econometrica, Econometric Society, vol. 37(3), pages 424-38, July.
    4. Sims, Christopher A, 1972. "Money, Income, and Causality," American Economic Review, American Economic Association, vol. 62(4), pages 540-52, September.
    Full references (including those not matched with items on IDEAS)

    This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

    When requesting a correction, please mention this item's handle: RePEc:eej:eeconj:v:16:y:1990:i:4:p:349-354. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Victor Matheson, College of the Holy Cross)

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If references are entirely missing, you can add them using this form.

    If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    This information is provided to you by IDEAS at the Research Division of the Federal Reserve Bank of St. Louis using RePEc data.