The asymmetric behavior of the U.S public debt
Carregando...
Arquivos
Data
2005-05-27
Autores
Orientador(res)
Lima, Luiz Renato Regis de Oliveira
Métricas
Título da Revista
ISSN da Revista
Título de Volume
Resumo
Our main goal in this paper was to measure how efficient is risk sharing between countries. In order to do so, we have used a international risk sharIn this paper we re-analyze the question of the U.S. public debt sustainability by using a quantile autoregression model. This modeling allows for testing whether the behavior of U.S. public debt is asymmetric or not. Our results provide evidence of a band of sustainability. Outside this band, the U.S. public debt is unsustainable. We also find fiscal policy to be adequate in the sense that occasional episodes in which the public debt moves out of the band do not pose a threat to long run sustainability.