More on budget deficits and interest rates in the United States

Richard Cebula ()

Public Choice, 1989, vol. 60, issue 1, 93-97

Abstract: This brief study demonstrates that, within the context of a properly specified reduced-form equation estimated by OLS, the federal budget deficit does act to elevate interest rates. These results differ sharply from Gupta's, where the total deficit is not broken down properly into its endogenous and exogenous components. Copyright Kluwer Academic Publishers 1989

Date: 1989
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DOI: 10.1007/BF00124315

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