Article1991

Cointegration and Government Borrowing Constraints: Evidence for the United States

163 citations0/0 files storedJournal of Business and Economic Statistics

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Fiscal Policies and Political Economy Monetary Policy and Economic Impact Economic and Fiscal Studies

Abstract

Testable implications are derived in a present-value borrowing-constraint model for the U.S. federal government. Critical values for unit-root and cointegration tests are calculated with Monte Carlo studies. Cointegration techniques are employed to determine whether the government has been involved in perpetual debt financing in recent years. The data reject this assertion.

Citations in this library

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References

1987Co-Integration and Error Correction: Representation, Estimation, and Testing 1979Distribution of the Estimators for Autoregressive Time Series with a Unit Root 1981Likelihood Ratio Statistics for Autoregressive Time Series with a Unit Root 1974Are Government Bonds Net Wealth?1984Testing for Unit Roots in Autoregressive-Moving Average Models of Unknown Order 1979On the Determination of the Public Debt 1987Forecasting and testing in co-integrated systems 1987Asymptotic Properties of Least Squares Estimators of Cointegrating Vectors

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