Panel cointegration tests of the sustainability hypothesis in rich OECD countries
(2010) In Applied Economics 42(11). p.1355-1364- 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 nonstationary 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.
Please use this url to cite or link to this publication:
https://lup.lub.lu.se/record/1618057
- author
- Westerlund, Joakim LU and Prohl, Silika
- organization
- publishing date
- 2010
- type
- Contribution to journal
- publication status
- published
- subject
- in
- Applied Economics
- volume
- 42
- issue
- 11
- pages
- 1355 - 1364
- publisher
- Routledge
- external identifiers
-
- wos:000277538500003
- scopus:77952378068
- ISSN
- 1466-4283
- DOI
- 10.1080/00036840701721323
- language
- English
- LU publication?
- yes
- id
- 3df1dcd0-78a2-4acc-8f9a-310c35dd1517 (old id 1618057)
- date added to LUP
- 2016-04-01 09:49:40
- date last changed
- 2022-03-11 23:29:09
@article{3df1dcd0-78a2-4acc-8f9a-310c35dd1517, 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 nonstationary 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.}}, author = {{Westerlund, Joakim and Prohl, Silika}}, issn = {{1466-4283}}, language = {{eng}}, number = {{11}}, pages = {{1355--1364}}, publisher = {{Routledge}}, series = {{Applied Economics}}, title = {{Panel cointegration tests of the sustainability hypothesis in rich OECD countries}}, url = {{http://dx.doi.org/10.1080/00036840701721323}}, doi = {{10.1080/00036840701721323}}, volume = {{42}}, year = {{2010}}, }