On the Fiscal Deficit Sustainability: Evidence from 15 OECD countries
| Autor: | Cheng-Hung Chang, 張正弘 |
|---|---|
| Rok vydání: | 2011 |
| Druh dokumentu: | 學位論文 ; thesis |
| Popis: | 99 This thesis examines the budget deficits sustainability of 15 OECD countries. The features of this dissertation are as follows. First, we adopt a battery of panel unit root test to tackle of the low power problem of the traditional unit root tests. Second, we employ exponential smooth transition (ESTAR) unit root tests to detect the sustainability of budget deficit since the literature show that the adjustment of budget deficits could be nonlinear. Empirical results show that, first, traditional unit root tests tend to accept the null hypothesis of a unit root or do not get consistent conclusion. Second, panel unit roots indicate that the budget deficits of Belgium, Finland, Greece, Italy, Netherlands, Portugal, Spain, and Sweden are stationary. Finally, ESTAR-type nonlinear unit root test results indicate that fourteen OECD countries’ budget deficits are nonlinear stationary and in favor of sustainability, implying that the default risk of budget default is not high. |
| Databáze: | Networked Digital Library of Theses & Dissertations |
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