Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/31462 
Year of Publication: 
2002
Series/Report no.: 
Working Paper No. 358
Publisher: 
Levy Economics Institute of Bard College, Annandale-on-Hudson, NY
Abstract: 
We contribute to the debate on whether the large U.S. federal budget deficits are sustainable in the long run. We model the U.S. government deficit per capita as a threshold autoregressive process. We find evidence that the U.S. budget deficit is sustainable in the long run and that economic policymakers will intervene to reduce per capita deficit only when it reaches a certain threshold.
Document Type: 
Working Paper

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