Resumen de US deficit sustainability revisited: multiple structural change approach

Oscar Bajo Rubio, María del Carmen Díaz Roldán, Vicente Esteve

• In this paper we re-examine the long-run sustainability of US budget deficits, using Bai and Perron�s multiple structural change approach.

  While the deficit would have been weakly sustainable over the full sample (1947:1-2004:3), strong sustainability would appear only between 1982:1 and 1995:4.