Fiscal policy, trigger points and interest rates : additional evidence from the US

Gerhard Reitschuler; Rupert Sendlhofer

We empirically investigate whether the relationship between interest rates and public deficits/debt may be nonlinear for the U.S. Using threshold estimation, we find evidence of level-dependent effects on interest rates, implying a significant effect of projected deficits and debt in the U.S. only if the deficit surpasses approximately 5% of GDP. -- public debt ; public deficit ; long-term interest rates ; nonlinearity ; threshold models ; Domar model

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Year of publication:	2011
Authors:	Reitschuler, Gerhard ; Sendlhofer, Rupert
Publisher:	Innsbruck : Univ. of Innsbruck, Inst. für Finanzwiss.
Subject:	Zins \| Interest rate \| Haushaltsdefizit \| Budget deficit \| Nichtlineare Regression \| Nonlinear regression \| Schätzung \| Estimation \| USA \| United States \| Öffentliche Schulden \| Zinsfuß \| Nachhaltigkeit \| Nichtlineares Phänomen \| Domar-Modell \| 1976-2011

Extent:	Online-Ressource (25 S.) graph. Darst.
Series:	Working papers in economics and statistics. - Innsbruck : [Verlag nicht ermittelbar], ISSN 1993-6885, ZDB-ID 2467024-8. - Vol. 2011-23
Type of publication:	Book / Working Paper
Type of publication (narrower categories):	Arbeitspapier ; Working Paper ; Graue Literatur ; Non-commercial literature
Language:	English
Other identifiers:	hdl:10419/73539 [Handle]
Classification:	E43 - Determination of Interest Rates; Term Structure Interest Rates ; E62 - Fiscal Policy; Public Expenditures, Investment, and Finance; Taxation ; H62 - Deficit; Surplus
Source:	ECONIS - Online Catalogue of the ZBW

Persistent link: https://ebvufind01.dmz1.zbw.eu/10009737516