Fiscal Readjustments in the United States: A Nonlinear Time-Series Analysis.

We analyze the fiscal adjustment process in the United States using a multivariate threshold vector error regression model. The shift from single-equation to multivariate setting adds value both in terms of our economic understanding of the fiscal adjustment process and the forecasting performance o...

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Publicado en:Economic Inquiry Vol. 47; no. 1; pp. 34 - 55
Autores principales: Cipollini, Andrea, Fattouh, Bassam, Mouratidis, Kostas
Formato: Artículo
Publicado: Wiley-Blackwell January 2009
Materias:
Acceso en línea:Ver este registro en EBSCOhost
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        10.1111/j.1465-7295.2008.00139.x
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        atl: Fiscal Readjustments in the United States: A Nonlinear Time-Series Analysis.
      aug:
        au:
          Cipollini, Andrea
          Fattouh, Bassam
          Mouratidis, Kostas
      su:
        Time series analysis
        Nonlinear theories
      sug:
        subj:
          Time series analysis
          Nonlinear theories
      ab: We analyze the fiscal adjustment process in the United States using a multivariate threshold vector error regression model. The shift from single-equation to multivariate setting adds value both in terms of our economic understanding of the fiscal adjustment process and the forecasting performance of nonlinear models. We find evidence that fiscal authorities intervene to reduce real per capita deficit only when it reaches a certain threshold and that fiscal adjustment takes place primarily by cutting government expenditure. The results of out-of-sample density forecast and probability forecasts suggest that a shift from a univariate autoregressive model to a multivariate model improves forecast performance. (JEL C32, C53, E62) Reprinted by permission of the publisher.
      pubtype: Academic Journal
      doctype: Article
      src: R
    language: English
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