Open AccessShould We Care for Structural Breaks When Assessing Fiscal Sustainability?
Author(s) -
António Afonso,
Christophe Rault
Publication year - 2007
Publication title -
ssrn electronic journal
Language(s) - English
Resource type - Journals
ISSN - 1556-5068
DOI - 10.2139/ssrn.1090606
Subject(s) - sustainability , fiscal sustainability , economics , business , macroeconomics , fiscal policy , ecology , biology
We apply recent panel cointegration methods to a structural equation between government expenditure and revenue. Allowing for multiple endogenous breaks and after computing appropriate bootstrap critical values, we conclude for fiscal sustainability in the overall EU15 panel.
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