INTERTEMPORAL SOLVENCY AND BREAKS IN THE US DEFICIT PROCESS - A MAXIMUM-LIKELIHOOD COINTEGRATION APPROACH

被引:12
作者
LIU, P
TANNER, E
机构
[1] Department of Economics, University of Miami, Coral Gables
来源
APPLIED ECONOMICS LETTERS | 1995年 / 2卷 / 07期
关键词
D O I
10.1080/135048595357339
中图分类号
F [经济];
学科分类号
02 ;
摘要
Previous research has shown that the intertemporal solvency condition is equivalent to the cointegration of either (1) the interest-inclusive government spendings and tax revenue or (2) the interest-exclusive government spendings, tax revenue and government outstanding debt. This note examines the intertemporal solvency condition using a maximum likelihood cointegration test. Results show that the solvency condition for the US government is satisfied only if a break is included in the process.
引用
收藏
页码:231 / 235
页数:5
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