General Equilibrium Perception on Twin Deficits Hypothesis: An Empirical Evidence for the U.S.

From the general equilibrium perceptive, this study proposes the inclusion of private savings and investments in examining twin deficits hypothesis. Using U.S. data, the empirical results support twin deficits hypothesis but the budget deficit’s elasticity is decreasing from unity to 0.43.

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Year of publication:	2009-08
Authors:	Tang, Tuck Cheong ; Lau, Evan
Institutions:	Department of Econometrics and Business Statistics, Monash Business School
Subject:	General Equilibrium \| Government Budget Deficits \| Current Account Balance \| U.S

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Extent:	application/pdf
Series:	Monash Economics Working Papers.
Type of publication:	Book / Working Paper
Language:	English
Notes:	Number 09-09 7 pages
Classification:	F32 - Current Account Adjustment; Short-Term Capital Movements ; H62 - Deficit; Surplus
Source:	RePEc - Research Papers in Economics

Persistent link: https://www.econbiz.de/10005064069