Has Federal Budget Deficit Policy Changed in Recent Years?
This paper applies new tests for parameter instability in cointegrated regression models to the U.S. federal government's intertemporal budget constraint in order to detect whether there has been a regime change in spending and taxing policies. Some researchers have argued that fiscal policy under Presidents Reagan and Bush moved the U.S. deficit onto an unsustainable path. The author's results suggest that government deficit policy in the 1980s was not significantly different from policies during the three earlier decades. However, a diverging debt-GNP ratio suggests that the government will run into problems marketing its debt if current policy continues. Copyright 1995 by Oxford University Press.
(This abstract was borrowed from another version of this item.)
To our knowledge, this item is not available for
download. To find whether it is available, there are three
1. Check below under "Related research" whether another version of this item is available online.
2. Check on the provider's web page whether it is in fact available.
3. Perform a search for a similarly titled item that would be available.
|Date of creation:||1993|
|Date of revision:|
|Contact details of provider:|| Postal: |
Phone: (416) 736-5083
Fax: (416) 736-5987
Web page: http://dept.econ.yorku.ca/
More information through EDIRC
When requesting a correction, please mention this item's handle: RePEc:fth:yorkca:93-8. 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: (Thomas Krichel)
If references are entirely missing, you can add them using this form.