An Efficient test of Fiscal Sustainability

Vasco Gabriel and Pataaree Sangduan
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Pataaree Sangduan: Bureau of Budget, Thailand

No 1110, School of Economics Discussion Papers from School of Economics, University of Surrey

Abstract: We suggest a multivariate efficient test of the 'strong' fi scal sustainability hypothesis, based on Horvath and Watson's (1995) cointegration test when cointegration vectors are pre-specified. Using data for a set of developed and developing economies, we show that, unlike our procedure, conventional methodologies tend to penalize the sustainability hypothesis.

JEL-codes: C32 E62 H60 (search for similar items in EconPapers)
Pages: 15 pages
Date: 2010-09
New Economics Papers: this item is included in nep-sea
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Citations: View citations in EconPapers (2)

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Related works:
Journal Article: An efficient test of fiscal sustainability (2010)
Working Paper: An Efficient Test of Fiscal Sustainability (2010)
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Persistent link: https://EconPapers.repec.org/RePEc:sur:surrec:1110

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