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US deficit sustainability revisited: a multiple structural change approach

  • Oscar Bajo-Rubio
  • Carmen Diaz-Roldan
  • Vicente Esteve

In this article we re-examine the long-run sustainability of US budget deficits, using Bai and Perron's multiple structural change approach. While the deficit would have been weakly sustainable over the full sample (1947:1-2005:3), strong sustainability would appear only between January 1982 and February 1996.

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File URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600843996
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Article provided by Taylor & Francis Journals in its journal Applied Economics.

Volume (Year): 40 (2008)
Issue (Month): 12 ()
Pages: 1609-1613

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Handle: RePEc:taf:applec:v:40:y:2008:i:12:p:1609-1613
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