Threshold Effects in the U.S. Budget Deficit期刊界 All Journals 搜尽天下杂志传播学术成果专业期刊搜索期刊信息化学术搜索

Threshold Effects in the U.S. Budget Deficit

Authors:	Philip Arestis rea Cipollini Bassam Fattouh

Affiliation:	Arestis:;Professor, Department of Land Economy, University of Cambridge, 19 Silver Street, Cambridge CB3 9EP, U.K. Phone 44–0–1223–766–971, Fax 44–0–1223–337–160, E-mail Cipollini:;Lecturer in Economics, Queen Mary and Westfield College, University of London, Mile End Road, London, E1 4NS, U.K. Phone 44–020–7893–5905, Fax 44–020–7893–3580, E-mail Fattouh:;Lecturer in Financial Economics, CeFiMS, SoAS, University of London, Thornhaugh Street, Russell Square, London WC1H 0HG, U.K. Phone 44–020–7898–4053, Fax 44–020–7898–4089, E-mail

Abstract:	We contribute to the debate on whether the U.S. large federal budget deficits are sustainable in the long run. We model the U.S. government deficit per capita as a threshold autoregressive process. We find evidence that the U.S. budget deficit is sustainable in the long run and that economic policy makers will only intervene to reduce per capita deficit when it reaches a certain threshold. (JEL C32 , E62 )

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