EconPapers    
Economics at your fingertips  
 

Is the Budget Deficit "Too Large?"

Craig Hakkio and Mark Rush

Economic Inquiry, 1991, vol. 29, issue 3, 429-45

Abstract: Yes, specifically, the authors find that recently spending and taxing policies of the government--if continued--violate the government's intertemporal budget constraint. As a result, government spending must be reduced and/or tax revenues must be increased. These conclusions are based on tests of whether government spending and revenue are cointegrated. In addition to examining real spending and revenue, the authors also normalize these variables by real GNP and population. For a growing economy, these normalized measures are perhaps more pertinent. The authors also test and find support for the hypothesis that deficits have become a problem only in recent years. Copyright 1991 by Oxford University Press.

Date: 1991
References: Add references at CitEc
Citations: View citations in EconPapers (317) Track citations by RSS feed

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:oup:ecinqu:v:29:y:1991:i:3:p:429-45

Ordering information: This journal article can be ordered from
http://www.oup.co.uk/journals

Access Statistics for this article

Economic Inquiry is currently edited by Preston McAfee

More articles in Economic Inquiry from Western Economic Association International Oxford University Press, Great Clarendon Street, Oxford OX2 6DP, UK. Contact information at EDIRC.
Bibliographic data for series maintained by Oxford University Press ().

 
Page updated 2022-08-29
Handle: RePEc:oup:ecinqu:v:29:y:1991:i:3:p:429-45