IDEAS home Printed from https://ideas.repec.org/a/taf/apeclt/v4y1997i12p775-779.html
   My bibliography  Save this article

International evidence on the sustainability of budget deficits

Author

Listed:
  • James Payne

Abstract

The sustainability of budget deficits of the G-7 countries is examined in this paper. Following the approach taken by Hakkio and Rush it is found that in the case of Germany it appears for each dollar increase in expenditures, revenues increase by an equal amount. For France, Japan, and Italy (real per GDP measure) the budget deficits of these countries may not be sustainable due to the lack of cointegration. In the cases of Canada, Italy (real levels and real per capita measures), United Kingdom, and the United States (real levels and real per capita) cointegration is present between revenues and expenditures. However, the estimated coefficients on expenditures for these countries are significantly less than one which suggests that government spending is growing faster than government revenue.

Suggested Citation

  • James Payne, 1997. "International evidence on the sustainability of budget deficits," Applied Economics Letters, Taylor & Francis Journals, vol. 4(12), pages 775-779.
    • Handle: RePEc:taf:apeclt:v:4:y:1997:i:12:p:775-779
    DOI: 10.1080/758528726
    as

    Download full text from publisher

    File URL: http://www.informaworld.com/openurl?genre=article&doi=10.1080/758528726&magic=repec&7C&7C8674ECAB8BB840C6AD35DC6213A474B5
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1080/758528726?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:taf:apeclt:v:4:y:1997:i:12:p:775-779. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Chris Longhurst (email available below). General contact details of provider: http://www.tandfonline.com/RAEL20 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.