NEW WORKING PAPER: Thanks to various Fourier DF unit root tests, time-varying fiscal reaction functions and threshold regressions, this study examines the stationarity and the sustainability of public finance for six industrial countries over the period spanning from 1870 to 2017. Longer-run debt sustainability is not rejected for the UK, Sweden, and for the US. The evidence is more mixed for Canada, Italy and Portugal.
You are welcome to download, share or comment the following working paper:
- Jamel Saadaoui, Chi Keung Marco Lau, Yifei Cai. Assessing Debt Stationarity and Sustainability in the Longer Run with Fourier DF Unit Root Tests and Time-Varying Fiscal Reaction Functions (April 18, 2022). https://ssrn.com/abstract=4078207.
Online appendix:
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