Should We Care for Structural Breaks When Assessing Fiscal Sustainability?
JOURNAL
YEAR
Sep 21, 2007
TYPE
Articles in journals
AUTHORS
Afonso, A., Rault, C.
VOL Nº
3
PAGES
8
ABSTRACT
We apply recent panel cointegration methods to a structural equation between government expenditure and revenue. Allowing for multiple endogenous breaks and after computing appropriate bootstrap critical values, we conclude for fiscal sustainability in the overall EU15 panel.
JEL CLASS
KEYWORDS
Fiscal sustainability,EU,Panel cointegration,
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