War and peace: Explosive U.S. public debt, 1791–2009

We show, in this study, that the U.S. public debt–GDP ratio was explosive in nature during the 1791–2009 sample period. The huge increase in U.S. debt during World War II is responsible for this result. Our findings differ profoundly from those generated by the standard unit root tests, which typically conclude that the U.S. public debt had a unit root.

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Year of publication:	2012
Authors:	Yoon, Gawon
Published in:	Economics Letters. - Elsevier, ISSN 0165-1765. - Vol. 115.2012, 1, p. 1-3
Publisher:	Elsevier
Subject:	Public debt \| Sustainability \| Recursive unit root test \| Explosiveness

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Type of publication:	Article
Classification:	H62 - Deficit; Surplus ; C22 - Time-Series Models
Source:	RePEc - Research Papers in Economics

Persistent link: https://www.econbiz.de/10010576470