Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/185883
Authors: 
Kirchgässner, Gebhard
Prohl, Silika
Year of Publication: 
2008
Citation: 
[Journal:] Swiss Journal of Economics and Statistics [ISSN:] 2235-6282 [Volume:] 144 [Year:] 2008 [Issue:] 1 [Pages:] 57-83
Abstract: 
Was Swiss federal fiscal policy sustainable over the period from 1900 to 2002? We perform unit root and cointegration tests for federal revenues and expenditures, taking into account a structural shift related to World War II. We find sustainability over the entire period. However, splitting the sample into two sub-samples before and after World War II, the results do much less support sustainability. Finally, applying the tax smoothing model of BARRO (1979), we show that cyclical fluctuations of the output and changes in expected inflation rate are major determinants of the federal budget deficit over the time period considered.
Subjects: 
Sustainability
Budget Deficits
Cointegration
Structural Breaks
JEL: 
H62
H63
Persistent Identifier of the first edition: 
Creative Commons License: 
https://creativecommons.org/licenses/by/4.0/
Document Type: 
Article
Social Media Mentions:

Files in This Item:
File
Size
244.51 kB





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