Are EU budget deficits stationary?

In this paper, we test for the stationarity of European Union budget deficits over the period 1971-2006, using a panel of thirteen member countries. Our testing strategy addresses two key concerns with regard to unit root panel data testing, namely (1) the presence of cross-sectional dependence amon...

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Tipo de recurso:
Fecha de publicación:
2010
Institución:
Universidad del Rosario
Repositorio:
Repositorio EdocUR - U. Rosario
Idioma:
eng
OAI Identifier:
oai:repository.urosario.edu.co:10336/23917
Acceso en línea:
https://doi.org/10.1007/s00181-009-0289-3
https://repository.urosario.edu.co/handle/10336/23917
Palabra clave:
Bootstrapping
Budget deficit
Economic structure
European union
Fiscal policy
Hypothesis testing
Maastricht treaty
Panel data
Europe
Fiscal sustainability
Heterogeneous dynamic panels
Mean reversion
Panel stationarity test
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License
Abierto (Texto Completo)
id EDOCUR2_16ded571bfd8ba7d5f74adbcaabeeb21
oai_identifier_str oai:repository.urosario.edu.co:10336/23917
network_acronym_str EDOCUR2
network_name_str Repositorio EdocUR - U. Rosario
repository_id_str
spelling eb727fd3-c31e-4a26-8c50-6f3fee0e65b3-15d0b120d-c27b-4e6f-9263-532c0ef0eef9-1792428146002020-05-26T00:06:40Z2020-05-26T00:06:40Z2010In this paper, we test for the stationarity of European Union budget deficits over the period 1971-2006, using a panel of thirteen member countries. Our testing strategy addresses two key concerns with regard to unit root panel data testing, namely (1) the presence of cross-sectional dependence among the countries in the panel and (2) the identification of potential structural breaks that might have occurred at different points in time. To address these concerns, we employ an AR-based bootstrap approach that allows us to test the null hypothesis of joint stationarity with endogenously determined structural breaks. In contrast to the existing literature, we find that the EU countries considered are characterised by fiscal stationarity over the full sample period irrespective of us allowing for structural breaks. This conclusion also holds when analysing sub-periods based on before and after the Maastricht treaty. © Springer-Verlag 2009.application/pdfhttps://doi.org/10.1007/s00181-009-0289-31435892103777332https://repository.urosario.edu.co/handle/10336/23917eng778No. 3767Empirical EconomicsVol. 38Empirical Economics, ISSN:14358921, 03777332, Vol.38, No.3 (2010); pp. 767-778https://www.scopus.com/inward/record.uri?eid=2-s2.0-77951203873&doi=10.1007%2fs00181-009-0289-3&partnerID=40&md5=c36e791a44a949cfb409da27e0691cbaAbierto (Texto Completo)http://purl.org/coar/access_right/c_abf2instname:Universidad del Rosarioreponame:Repositorio Institucional EdocURBootstrappingBudget deficitEconomic structureEuropean unionFiscal policyHypothesis testingMaastricht treatyPanel dataEuropeFiscal sustainabilityHeterogeneous dynamic panelsMean reversionPanel stationarity testAre EU budget deficits stationary?articleArtículohttp://purl.org/coar/version/c_970fb48d4fbd8a85http://purl.org/coar/resource_type/c_6501Holmes, Mark J.Panagiotidis, TheodoreOtero Cardona, Jesús Gilberto10336/23917oai:repository.urosario.edu.co:10336/239172022-05-02 07:37:21.277108https://repository.urosario.edu.coRepositorio institucional EdocURedocur@urosario.edu.co
dc.title.spa.fl_str_mv Are EU budget deficits stationary?
title Are EU budget deficits stationary?
spellingShingle Are EU budget deficits stationary?
Bootstrapping
Budget deficit
Economic structure
European union
Fiscal policy
Hypothesis testing
Maastricht treaty
Panel data
Europe
Fiscal sustainability
Heterogeneous dynamic panels
Mean reversion
Panel stationarity test
title_short Are EU budget deficits stationary?
title_full Are EU budget deficits stationary?
title_fullStr Are EU budget deficits stationary?
title_full_unstemmed Are EU budget deficits stationary?
title_sort Are EU budget deficits stationary?
dc.subject.keyword.spa.fl_str_mv Bootstrapping
Budget deficit
Economic structure
European union
Fiscal policy
Hypothesis testing
Maastricht treaty
Panel data
Europe
Fiscal sustainability
Heterogeneous dynamic panels
Mean reversion
Panel stationarity test
topic Bootstrapping
Budget deficit
Economic structure
European union
Fiscal policy
Hypothesis testing
Maastricht treaty
Panel data
Europe
Fiscal sustainability
Heterogeneous dynamic panels
Mean reversion
Panel stationarity test
description In this paper, we test for the stationarity of European Union budget deficits over the period 1971-2006, using a panel of thirteen member countries. Our testing strategy addresses two key concerns with regard to unit root panel data testing, namely (1) the presence of cross-sectional dependence among the countries in the panel and (2) the identification of potential structural breaks that might have occurred at different points in time. To address these concerns, we employ an AR-based bootstrap approach that allows us to test the null hypothesis of joint stationarity with endogenously determined structural breaks. In contrast to the existing literature, we find that the EU countries considered are characterised by fiscal stationarity over the full sample period irrespective of us allowing for structural breaks. This conclusion also holds when analysing sub-periods based on before and after the Maastricht treaty. © Springer-Verlag 2009.
publishDate 2010
dc.date.created.spa.fl_str_mv 2010
dc.date.accessioned.none.fl_str_mv 2020-05-26T00:06:40Z
dc.date.available.none.fl_str_mv 2020-05-26T00:06:40Z
dc.type.eng.fl_str_mv article
dc.type.coarversion.fl_str_mv http://purl.org/coar/version/c_970fb48d4fbd8a85
dc.type.coar.fl_str_mv http://purl.org/coar/resource_type/c_6501
dc.type.spa.spa.fl_str_mv Artículo
dc.identifier.doi.none.fl_str_mv https://doi.org/10.1007/s00181-009-0289-3
dc.identifier.issn.none.fl_str_mv 14358921
03777332
dc.identifier.uri.none.fl_str_mv https://repository.urosario.edu.co/handle/10336/23917
url https://doi.org/10.1007/s00181-009-0289-3
https://repository.urosario.edu.co/handle/10336/23917
identifier_str_mv 14358921
03777332
dc.language.iso.spa.fl_str_mv eng
language eng
dc.relation.citationEndPage.none.fl_str_mv 778
dc.relation.citationIssue.none.fl_str_mv No. 3
dc.relation.citationStartPage.none.fl_str_mv 767
dc.relation.citationTitle.none.fl_str_mv Empirical Economics
dc.relation.citationVolume.none.fl_str_mv Vol. 38
dc.relation.ispartof.spa.fl_str_mv Empirical Economics, ISSN:14358921, 03777332, Vol.38, No.3 (2010); pp. 767-778
dc.relation.uri.spa.fl_str_mv https://www.scopus.com/inward/record.uri?eid=2-s2.0-77951203873&doi=10.1007%2fs00181-009-0289-3&partnerID=40&md5=c36e791a44a949cfb409da27e0691cba
dc.rights.coar.fl_str_mv http://purl.org/coar/access_right/c_abf2
dc.rights.acceso.spa.fl_str_mv Abierto (Texto Completo)
rights_invalid_str_mv Abierto (Texto Completo)
http://purl.org/coar/access_right/c_abf2
dc.format.mimetype.none.fl_str_mv application/pdf
institution Universidad del Rosario
dc.source.instname.spa.fl_str_mv instname:Universidad del Rosario
dc.source.reponame.spa.fl_str_mv reponame:Repositorio Institucional EdocUR
repository.name.fl_str_mv Repositorio institucional EdocUR
repository.mail.fl_str_mv edocur@urosario.edu.co
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