Cebula, Richard J.; Saltz, Ira S. - In: Economia Internazionale / International Economics 51 (1998) 2, pp. 163-169
This study uses causality tests to determine the direction of causality between U.S. federal budget deficits and ex ante real long-term interest rates. For the 1971-1991 period, it is found that the ex ante real long-term interest rate may cause the structural budget deficit.