Should We Care for Structural Breaks When Assessing Fiscal Sustainability?
Economics Bulletin, Vol. 3 No. 63, pp. 1-9, 2007
Posted: 4 Jan 2008
Abstract
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.
Keywords: fiscal sustainability, EU, panel cointegration
JEL Classification: C23, E62, H62
Suggested Citation: Suggested Citation
Afonso, António and Rault, Christophe and Rault, Christophe, Should We Care for Structural Breaks When Assessing Fiscal Sustainability?. Economics Bulletin, Vol. 3 No. 63, pp. 1-9, 2007, Available at SSRN: https://ssrn.com/abstract=1030262
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