US deficit sustainability revisited: A multiple structural change approach

Oscar Bajo-Rubio (1) , Vicente Esteve (2) , Carmen Díaz-Roldán (1)

1 UCLM - Universidad de Castilla-La Mancha = University of Castilla-La Mancha
2 Department of Applied Economics II

In this paper 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 1982:1 and 1996:2.

Mots clés: Social Sciences & Humanities

Oscar Bajo-Rubio, Vicente Esteve, Carmen Díaz-Roldán. US deficit sustainability revisited: A multiple structural change approach. Applied Economics, 2008, 40 (12), pp.1609-1613. ⟨10.1080/00036840600843996⟩. ⟨hal-00582077⟩