More documents from Westerlund, Joakim; Prohl, Silika
More documents from Applied Economics

Export to your Reference Manger

Please Copy & Paste



Bookmark and Share

Panel cointegration tests of the sustainability hypothesis in rich OECD countries

[journal article]

Westerlund, Joakim; Prohl, Silika

fulltextDownloadDownload full text

(758 KByte)

Citation Suggestion

Please use the following Persistent Identifier (PID) to cite this document:

Further Details
Abstract This study reexamines the sustainability hypothesis by testing whether government revenues and expenditures for eight rich OECD countries between 1977Q1 and 2005Q4 are cointegrated. For this purpose, a non-stationary panel data approach is adopted, which is general enough to permit for cross-country dependence as well as structural breaks representing major shifts in fiscal policy. In contrast to many earlier studies, the results reported in this study suggest that the sustainability hypothesis cannot be rejected.
Classification Public Finance; Economic Statistics, Econometrics, Business Informatics
Free Keywords fiscal sustainability; panel cointegration; structural change
Document language English
Publication Year 2010
Page/Pages p. 1355-1364
Journal Applied Economics, 42 (2010) 11
Status Postprint; peer reviewed
Licence PEER Licence Agreement (applicable only to documents from PEER project)