Should We Care for Structural Breaks When Assessing Fiscal Sustainability?
13 Pages Posted: 11 Feb 2008
Date Written: November 2007
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 pane.
Keywords: fiscal sustainability, EU, panel cointegration
JEL Classification: C23, E62, H62
Suggested Citation: Suggested Citation
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