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US deficit sustainability revisited: a multiple structural change approach

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In this article we re-examine the long-run sustainability of US budget deficits, using Bai and Perron's multiple structural change approach. While the deficit would have been weakly sustainable over the full sample (1947:1-2005:3), strong sustainability would appear only between January 1982 and February 1996.
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Document Type: Research Article

Affiliations: 1: Universidad de Castilla-La Mancha and Instituto de Estudios Fiscales, Spain 2: Universidad de Castilla-La Mancha, Spain 3: Universidad de Valencia, Spain

Publication date: 2008-06-01

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