Searching for Threshold Effects in the Evolution of Budget Deficits: An Application to the Spanish Case

Oscar Bajo-Rubio (oscar.bajo@uclm.es), Carmen Diaz-Roldan and Vicente Esteve (vicente.esteve@uv.es)

No E2003/29, Economic Working Papers at Centro de Estudios Andaluces from Centro de Estudios Andaluces

Abstract: In this paper we use recent developments on threshold autoregressive (TAR) models that allow us to derive endogenously threshold effects in the evolution of the Spanish budget deficit. Specifically, a mean-reverting dynamic behaviour of the budget deficit should be expected once such threshold is reached.

Keywords: Fiscal policy; Budget deficits; Threshold effects; TAR models. (search for similar items in EconPapers)
JEL-codes: E62 H62 (search for similar items in EconPapers)
Pages: 16 pages
Date: 2003
New Economics Papers: this item is included in nep-pbe
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Citations: View citations in EconPapers (8)

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Journal Article: Searching for threshold effects in the evolution of budget deficits: an application to the Spanish case (2004)
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Persistent link: https://EconPapers.repec.org/RePEc:cea:doctra:e2003_29

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