Assessing Debt Stationarity and Sustainability in the Longer Run with Fourier DF Unit Root Tests and Time-Varying Fiscal Reaction Functions

Jamel Saadaoui, Chi Keung Marco Lau, Yifei Cai

Research output: Working paperPreprint

Abstract

Thanks to various Fourier DF unit root tests, time-varying fiscal reaction functions and threshold regressions, this study examines the stationarity and the sustainability of public finance for six industrial countries over the period spanning from 1870 to 2017. Longer-run debt sustainability is not rejected for the UK, Sweden, and for the US. The evidence is more mixed for Canada, Italy and Portugal.
Original languageEnglish
PublisherSSRN
DOIs
Publication statusPublished - 20 Apr 2022

Bibliographical note

Jamel Saadaoui, Chi Keung Marco Lau, Yifei Cai. Testing fiscal sustainability in OECD countries: new evidence from the past centuries, Applied Economics Letters, 2022. https://www.tandfonline.com/doi/full/10.1080/13504851.2022.2142502.

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