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Resumen de US deficit sustainability revisited: a multiple structural change approach

María del Carmen Díaz Roldán, Óscar Bajo Rubio, 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.


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