Searching for Threshold Effects in the Evolution of Budget Deficits: An Application to the Spanish Case

In this paper we use recent developments on threshold autoregressive (TAR) models that allow us to derive endogenously threshold effects in the evolution of the Spanish budget deficit. Specifically, a mean-reverting dynamic behaviour of the budget deficit should be expected once such threshold is reached.

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Year of publication:	2003
Authors:	Bajo-Rubio, Oscar ; Díaz-Roldán, Carmen ; Esteve, Vicente
Institutions:	Centro de Estudios Andaluces, Government of Andalusia
Subject:	Fiscal policy \| Budget deficits \| Threshold effects \| TAR models

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Extent:	application/pdf
Series:	Economic Working Papers at Centro de Estudios Andaluces.
Type of publication:	Book / Working Paper
Notes:	Number E2003/29 16 pages
Classification:	E62 - Fiscal Policy; Public Expenditures, Investment, and Finance; Taxation ; H62 - Deficit; Surplus
Source:	RePEc - Research Papers in Economics

Persistent link: https://www.econbiz.de/10005121314