Footnote:
Nach Informationen von SSRN wurde die ursprüngliche Fassung des Dokuments September 2002 erstellt
Description:
We contribute to the debate on whether the US large federal budget deficits are sustainable in the long run. We model the US government deficit per capita as a threshold autoregressive process. We find evidence that the US budget deficit is sustainable in the long run and that economic policymakers will only intervene to reduce per capita deficit when it reaches a certain threshold