Testing intertemporal budget constraints: theory and applications to U.S. federal budget and current account deficits.: An article from: Journal of Money, Credit & Banking

This digital document is an article from Journal of Money, Credit & Banking, published by Ohio State University Press on May 1, 1991. The length of the article is 8246 words. The page length shown above is based on a typical 300-word page. The article is delivered in HTML format and is available in your Amazon.com Digital Locker immediately after purchase. You can view it with any web browser.

From the supplier: This paper extends previous tests of intertemporal budget balance and present value relationships by expanding the set of allowable deficit processes, and by deriving a testable condition that is sufficient to ensue intertemporal budget balance as long as the expected discount rate is strictly positive. Using these tests, we find that both the postwar federal budget deficit process and the process governing the accumulation of U.S. assets by foreigners are consistent with intertemporal budget balance. (Printed by permission of the publisher.)

Citation Details
Title: Testing intertemporal budget constraints: theory and applications to U.S. federal budget and current account deficits.
Author: Bharat Trehan
Publication:Journal of Money, Credit & Banking (Refereed)
Date: May 1, 1991
Publisher: Ohio State University Press
Volume: v23 Issue: n2 Page: p206(18)

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