EconStor >
ifo Institut – Leibniz-Institut für Wirtschaftsforschung an der Universität München >
CESifo Working Papers, CESifo Group Munich >

Please use this identifier to cite or link to this item:

http://hdl.handle.net/10419/26626
  
Title:Bootstrap panel granger-causality between government budget and external deficits for the EU PDF Logo
Authors:Afonso, António
Rault, Christophe
Issue Date:2009
Series/Report no.:CESifo working paper 2581
Abstract:We investigate the existence of Granger-causality between current account and government budget balances over the period 1970-2007, for different EU and OECD country groupings. We use the panel-data approach of Kónya (2006), which is based on SUR systems and Wald tests with country specific bootstrap critical values. Our results show a causal relation from budget deficits to current account deficits for several EU countries: Bulgaria, Czech Republic, Estonia, Finland, France, Italy, Hungary, Lithuania, Poland, and Slovakia, along the lines of the so-called twin-deficit relationship. Considering the effective real exchange rate in the SUR system does not substantially alter the results.
Subjects:Panel causality tests
budget deficit
external imbalance
real exchange rates
EU
OECD
JEL:C23
E62
F32
H62
Document Type:Working Paper
Appears in Collections:CESifo Working Papers, CESifo Group Munich

Files in This Item:
File Description SizeFormat
595179207.PDF254.28 kBAdobe PDF
No. of Downloads: Counter Stats
Download bibliographical data as: BibTeX
Share on:http://hdl.handle.net/10419/26626

Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.