The Political Economy of Budget Deficits

L. Leachman, G. Rosas, P. Lange and A. Bester, “The Political Economy of Budget Deficits”, Economics and Politics, 19 (3), 2007. In Leachman et al. (2005) we use the multicointegration approach to test for sustainable fiscal budgeting processes in a stochastic setting in 15 industrialized countries. In this paper, we extend the analysis in order to […]

Multicointegration and Sustainability of Fiscal Practices

L. Leachman, A. Bester, G. Rosas, and P. Lange, “Multicointegration and Sustainability of Fiscal Practices”, Economic Inquiry, 43 (2), 2005. Using multicointegration methodology, we develop criteria for testing sustainability of fiscal budgeting processes across all states of nature. Criteria are derived from the optimal control literature where levels and rates of change of a system of […]