Should we Care for Structural Breaks When Assessing Fiscal Sustainability?

Antonio Afonso and Christophe Rault ()

No 2008/01, Working Papers from Department of Economics at the School of Economics and Management (ISEG), Technical University of Lisbon.

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. (search for similar items in EconPapers)
JEL-codes: C23 E62 H62 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-ecm, nep-eec and nep-mac
Date: 2008-01
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Related works:
Working Paper: Should we care for structural breaks when assessing fiscal sustainability? (2008)
Journal Article: Should we care for structural breaks when assessing fiscal sustainability? (2007)
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Persistent link: http://EconPapers.repec.org/RePEc:ise:isegwp:wp12008

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