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Are “twin deficits” asymmetric? Evidence on government budget and current account balances, 1870–2013

International Economics, 2019
Using data from seventeen countries over the period 1870–2013, we first find that there is robust empirical support for the “twin deficits” hypothesis: under the assumption of symmetry, a change in the budget deficit by 1% of GDP causes the current ...
Georgios Karras
exaly   +2 more sources

‘Twin Deficits’ Hypothesis

Foreign Trade Review, 2017
Higher and persistent level of fiscal deficit and current account deficit is the problem of the day for Indian economy. There exists an argument that higher fiscal deficit is the major factor behind worsening balance of payments position. However, there is no identical perception on the relationship between fiscal deficit and current account deficit ...
Anantha Ramu M.R.
semanticscholar   +2 more sources

Twin Deficits in the European Countries

International Advances in Economic Research, 2013
Public debt is a burden on future electors and taxpayers. In the absence of constitutional constraints, the incumbent government may show the cost of some public expenditures or tax reductions toward the future by financing them via new debt. However, according to the Ricardian theorem of public debt, the burden of debt is always anticipated via ...
Cosimo Magazzino, Francesco Forte
exaly   +3 more sources

Excess Savings and Twin Deficits: The Transmission of Fiscal Stimulus in Open Economies

NBER macroeconomics annual, 2023
Three salient facts have emerged in the world economy since 2020. First, a large increase in private savings around the world, especially in the United States.
Rishabh Aggarwal   +3 more
semanticscholar   +1 more source

Revisiting the twin deficits hypothesis in the United States: Further evidence based on system-equation ADL test for threshold cointegration

The Journal of International Trade & Economic Development, 2023
We revisit the twin deficits hypothesis (budget and trade deficits) for the United States during 1791–2019, using the system-equation ADL test for threshold cointegration proposed by Li (2017).
T. Chang   +3 more
semanticscholar   +1 more source

Twin deficits hypothesis in Bangladesh: an empirical investigation

, 2021
PurposeThis study attempts to examine the twin deficits hypothesis for Bangladesh. Along with the traditional twin deficits hypothesis associated with the current account and fiscal deficit, the paper also explores the causal relationship between the ...
S. Dey, M. Tareque
semanticscholar   +1 more source

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