Non-Linearity in Testing for Fiscal Sustainability

In this paper we characterise fiscal policy in terms of non-linear processes. We find that government spending and taxes can be described as being non-linear trend stationary processes instead of unit roots. A long run equilibrium relationship - a non-linear co-trend - does exist between the two series, fulfilling the intertemporal government budget constraint. We use Italian data spanning from 1861 to 1998

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Year of publication:	2003
Authors:	Ricciuti, Roberto
Publisher:	[S.l.] : SSRN
Subject:	Finanzpolitik \| Fiscal policy \| Nachhaltigkeit \| Sustainability \| Theorie \| Theory \| Nichtlineare Regression \| Nonlinear regression

Extent:	1 Online-Ressource (30 p)
Type of publication:	Book / Working Paper
Language:	English
Notes:	Nach Informationen von SSRN wurde die ursprüngliche Fassung des Dokuments June 2003 erstellt
Other identifiers:	10.2139/ssrn.433380 [DOI]
Classification:	C22 - Time-Series Models ; C32 - Time-Series Models ; E62 - Fiscal Policy; Public Expenditures, Investment, and Finance; Taxation ; H62 - Deficit; Surplus
Source:	ECONIS - Online Catalogue of the ZBW

Persistent link: https://www.econbiz.de/10014075912