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Panel cointegration tests of the sustainability hypothesis in rich OECD countries

Westerlund, Joakim LU and Prohl, Silika (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.
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author
organization
publishing date
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
2010-06-21 10:30:25
date last changed
2018-05-29 11:05:46
@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},
  volume       = {42},
  year         = {2010},
}