Economics at your fingertips  

The impact of budget deficits on national saving in the USA

Gyan Pradhan and Kamal Upadhyaya ()

Applied Economics, 2001, vol. 33, issue 13, 1745-1750

Abstract: This paper analyses the effect of government budget deficits on national saving in the USA utilizing annual time series data from 1967 to 1996. A model that includes budget deficits, money supply, real exchange rate, real interest rate, and the proportion of working age population to total population to explain national saving is developed. After examining the time series properties of the data an error correction model is estimated. The overall results suggest that an increase in government budget deficits tend to reduce national saving. The working age population coming out of the baby boom generation has positively contributed to an increase in national saving.

Date: 2001
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (4) Track citations by RSS feed

Downloads: (external link) (text/html)
Access to full text is restricted to subscribers.

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:

Ordering information: This journal article can be ordered from

Access Statistics for this article

Applied Economics is currently edited by Anita Phillips

More articles in Applied Economics from Taylor & Francis Journals
Bibliographic data for series maintained by Chris Longhurst ().

Page updated 2019-12-27
Handle: RePEc:taf:applec:v:33:y:2001:i:13:p:1745-1750