Mean reversion of the fiscal conduct in 24 developing countries.
In this paper, we examine the mean reverting behaviour of fiscal deficit by analysing the fiscal position of 24 developing countries. Using annual data over the period 1970–2003 and the series-specific panel unit root test developed by Breuer et al. (Oxford Bulletin of Economics and Statistics, Vol...
| Main Authors: | , |
|---|---|
| Format: | Article |
| Language: | English English |
| Published: |
Blackwell Publishing Ltd
2010
|
| Online Access: | http://psasir.upm.edu.my/id/eprint/15566/1/A%20new%20method%20for%20MR%20grayscale%20inhomogeneity%20correction.pdf |
| _version_ | 1825945646059749376 |
|---|---|
| author | Baharumshah, Ahmad Zubaidi Lau, Evan |
| author_facet | Baharumshah, Ahmad Zubaidi Lau, Evan |
| author_sort | Baharumshah, Ahmad Zubaidi |
| collection | UPM |
| description | In this paper, we examine the mean reverting behaviour of fiscal deficit by analysing the fiscal position of 24 developing countries. Using annual data over the period 1970–2003 and the series-specific panel unit root test
developed by Breuer et al. (Oxford Bulletin of Economics and Statistics, Vol. 64 (2002), pp. 527–546), we found the budget process for most developing countries fails to satisfy the strong-form sustainability condition. Further investigation shows the budget process for a majority of the
countries is on a sustainable path (weak form) when a one-time, structural break is allowed in the model. Therefore, our empirical results suggest that the budget process in most of the sample countries is in accordance with the intertemporal budget constraint. |
| first_indexed | 2024-03-06T07:34:43Z |
| format | Article |
| id | upm.eprints-15566 |
| institution | Universiti Putra Malaysia |
| language | English English |
| last_indexed | 2024-03-06T07:34:43Z |
| publishDate | 2010 |
| publisher | Blackwell Publishing Ltd |
| record_format | dspace |
| spelling | upm.eprints-155662015-08-28T02:20:50Z http://psasir.upm.edu.my/id/eprint/15566/ Mean reversion of the fiscal conduct in 24 developing countries. Baharumshah, Ahmad Zubaidi Lau, Evan In this paper, we examine the mean reverting behaviour of fiscal deficit by analysing the fiscal position of 24 developing countries. Using annual data over the period 1970–2003 and the series-specific panel unit root test developed by Breuer et al. (Oxford Bulletin of Economics and Statistics, Vol. 64 (2002), pp. 527–546), we found the budget process for most developing countries fails to satisfy the strong-form sustainability condition. Further investigation shows the budget process for a majority of the countries is on a sustainable path (weak form) when a one-time, structural break is allowed in the model. Therefore, our empirical results suggest that the budget process in most of the sample countries is in accordance with the intertemporal budget constraint. Blackwell Publishing Ltd 2010-07 Article PeerReviewed application/pdf en http://psasir.upm.edu.my/id/eprint/15566/1/A%20new%20method%20for%20MR%20grayscale%20inhomogeneity%20correction.pdf Baharumshah, Ahmad Zubaidi and Lau, Evan (2010) Mean reversion of the fiscal conduct in 24 developing countries. The Manchester School, 78 (4). pp. 302-325. ISSN 1463-6786 10.1111/j.1467-9957.2009.02140.x English |
| spellingShingle | Baharumshah, Ahmad Zubaidi Lau, Evan Mean reversion of the fiscal conduct in 24 developing countries. |
| title | Mean reversion of the fiscal conduct in 24 developing countries.
|
| title_full | Mean reversion of the fiscal conduct in 24 developing countries.
|
| title_fullStr | Mean reversion of the fiscal conduct in 24 developing countries.
|
| title_full_unstemmed | Mean reversion of the fiscal conduct in 24 developing countries.
|
| title_short | Mean reversion of the fiscal conduct in 24 developing countries.
|
| title_sort | mean reversion of the fiscal conduct in 24 developing countries |
| url | http://psasir.upm.edu.my/id/eprint/15566/1/A%20new%20method%20for%20MR%20grayscale%20inhomogeneity%20correction.pdf |
| work_keys_str_mv | AT baharumshahahmadzubaidi meanreversionofthefiscalconductin24developingcountries AT lauevan meanreversionofthefiscalconductin24developingcountries |