Abstract The worldwide growth slowdown after 1975 was a major negative fiscal shock; lower growth lowers the present value of tax revenues and primary surpluses and thus makes a given level of debt more burdensome. Most countries failed to adjust to the negative fiscal consequences of the growth...

For the past seven years, the state spent more from the General Fund than its tax structure generated. To help cover the difference, the state borrowed from institutional investors. Should Californians be concerned? More broadly, how does debt fit into the annual budget debate? Evaluation of...

This paper presents a thorough empirical analysis of fiscal developments in Lebanon over the past three decades. After an evaluation of major fiscal and monetary developments, the paper uses the Present Value Constraint framework to analyze whether debt and deficits are sustainable. Unit root...

This paper reexamines the relationship between budget deficits and exchange rates by applying Hakkio’s (1996) model to seven Asian countries and eight Euro‐currency countries over the years from 1951 to 2001. Applying the Time‐Series Cross‐Section Regression with the Seemingly Unrelated...

This paper analyzes the relationship between government budget deficits, defence expenditure and income redistribution among different social-income groups in Turkey for the period 1965-2003. The analysis was based on a five-equation vector auto regressive (VAR) model and impulse response...

This paper surveys the recent literature on the theory of macroeconomic policy. We study the effect of various incentive constraints on the policy-making process, such as lack of credibility, political opportunism, political ideology, and divided government. The survey is organized in three...

By not including a measure of household production in the U.S. GDP, the U.S. economy's performance since the early 1970s compared with the economy's performance since the Civil War has been underestimated. Had household production been incorporated into the U.S. measures, the source of the...

South Africa has been experiencing unprecedented budget deficits since the 1960s, in light of this, the study investigates whether budget deficits crowd out or crowd in private investment in South Africa, using quarterly data covering the period 1994 to 2009. An empirical model linking private...

Ghana is presently confronted with persistent budget deficits and burgeoning public debt in excess of 52% of GDP and frequent fluctuations in total output below its long-run trend. This is of great concern which has issues for the country's long term growth and debt sustainability. Though the...