Should we care for structural breaks when assessing fiscal sustainability?

Antonio Afonso () and Christophe Rault ()

No wp902, William Davidson Institute Working Papers Series from William Davidson Institute at the University of Michigan Stephen M. Ross Business School

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-eec and nep-mac
Date: 2008-11-01
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http://www.wdi.umich.edu/files/Publications/WorkingPapers/wp902.pdf

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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