Are EU budget deficits stationary?

Mark J. Holmes, Jesús Otero, Theodore Panagiotidis

Resultado de la investigación: Contribución a RevistaArtículo

16 Citas (Scopus)

Resumen

In this paper, we test for the stationarity of European Union budget deficits over the period 1971-2006, using a panel of thirteen member countries. Our testing strategy addresses two key concerns with regard to unit root panel data testing, namely (1) the presence of cross-sectional dependence among the countries in the panel and (2) the identification of potential structural breaks that might have occurred at different points in time. To address these concerns, we employ an AR-based bootstrap approach that allows us to test the null hypothesis of joint stationarity with endogenously determined structural breaks. In contrast to the existing literature, we find that the EU countries considered are characterised by fiscal stationarity over the full sample period irrespective of us allowing for structural breaks. This conclusion also holds when analysing sub-periods based on before and after the Maastricht treaty. © Springer-Verlag 2009.
Idioma originalEnglish (US)
Páginas (desde-hasta)767-778
Número de páginas12
PublicaciónEmpirical Economics
DOI
EstadoPublished - jun 1 2010

Huella dactilar

Structural Breaks
budget deficit
Stationarity
EU
Maastricht Treaty
Testing
Unit Root
Panel Data
Null hypothesis
Bootstrap
Union
EU budget
Structural breaks
Budget deficits
literature
time

Citar esto

Holmes, Mark J. ; Otero, Jesús ; Panagiotidis, Theodore. / Are EU budget deficits stationary?. En: Empirical Economics. 2010 ; pp. 767-778.
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Are EU budget deficits stationary? / Holmes, Mark J.; Otero, Jesús; Panagiotidis, Theodore.

En: Empirical Economics, 01.06.2010, p. 767-778.

Resultado de la investigación: Contribución a RevistaArtículo

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