Mean Reversion Of The Fiscal Conduct In 24 Developing Countries
In this paper, we examine the mean reverting behaviour of fiscal deficit by analysing the fiscal position of 24 developing countries. Using annual data over the period 1970–2003 and the series-specific panel unit root test developed by Breuer et al. (Oxford Bulletin of Economics and Statistics, Vol...
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| Format: | Article |
| Language: | English |
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Blackwell Publishing Ltd.
2010
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| Online Access: | http://ir.unimas.my/id/eprint/17980/ http://ir.unimas.my/id/eprint/17980/1/MEAN%20REVERSION%20OF%20THE%20FISCAL%20CONDUCT%20%28abstract%29.pdf |
| _version_ | 1848838409926213632 |
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| author | Ahmad Zubaidi, Baharumshah Evan, Lau |
| author_facet | Ahmad Zubaidi, Baharumshah Evan, Lau |
| author_sort | Ahmad Zubaidi, Baharumshah |
| building | UNIMAS Institutional Repository |
| collection | Online Access |
| description | In this paper, we examine the mean reverting behaviour of fiscal deficit by analysing the fiscal position of 24 developing countries. Using annual data over the period 1970–2003 and the series-specific panel unit root test
developed by Breuer et al. (Oxford Bulletin of Economics and Statistics, Vol. 64 (2002), pp. 527–546), we found the budget process for most developing countries fails to satisfy the strong-form sustainability condition.
Further investigation shows the budget process for a majority of the countries is on a sustainable path (weak form) when a one-time, structural break is allowed in the model. Therefore, our empirical results suggest that the budget process in most of the sample countries is in
accordance with the intertemporal budget constraint. |
| first_indexed | 2025-11-15T06:55:06Z |
| format | Article |
| id | unimas-17980 |
| institution | Universiti Malaysia Sarawak |
| institution_category | Local University |
| language | English |
| last_indexed | 2025-11-15T06:55:06Z |
| publishDate | 2010 |
| publisher | Blackwell Publishing Ltd. |
| recordtype | eprints |
| repository_type | Digital Repository |
| spelling | unimas-179802023-06-14T03:18:10Z http://ir.unimas.my/id/eprint/17980/ Mean Reversion Of The Fiscal Conduct In 24 Developing Countries Ahmad Zubaidi, Baharumshah Evan, Lau H Social Sciences (General) In this paper, we examine the mean reverting behaviour of fiscal deficit by analysing the fiscal position of 24 developing countries. Using annual data over the period 1970–2003 and the series-specific panel unit root test developed by Breuer et al. (Oxford Bulletin of Economics and Statistics, Vol. 64 (2002), pp. 527–546), we found the budget process for most developing countries fails to satisfy the strong-form sustainability condition. Further investigation shows the budget process for a majority of the countries is on a sustainable path (weak form) when a one-time, structural break is allowed in the model. Therefore, our empirical results suggest that the budget process in most of the sample countries is in accordance with the intertemporal budget constraint. Blackwell Publishing Ltd. 2010 Article PeerReviewed text en http://ir.unimas.my/id/eprint/17980/1/MEAN%20REVERSION%20OF%20THE%20FISCAL%20CONDUCT%20%28abstract%29.pdf Ahmad Zubaidi, Baharumshah and Evan, Lau (2010) Mean Reversion Of The Fiscal Conduct In 24 Developing Countries. The Manchester School, 78 (4). pp. 302-325. ISSN 1467-9957 http://onlinelibrary.wiley.com/doi/10.1111/j.1467-9957.2009.02140.x/abstract DOI: 10.1111/j.1467-9957.2009.02140.x |
| spellingShingle | H Social Sciences (General) Ahmad Zubaidi, Baharumshah Evan, Lau Mean Reversion Of The Fiscal Conduct In 24 Developing Countries |
| title | Mean Reversion Of The Fiscal Conduct In 24 Developing Countries |
| title_full | Mean Reversion Of The Fiscal Conduct In 24 Developing Countries |
| title_fullStr | Mean Reversion Of The Fiscal Conduct In 24 Developing Countries |
| title_full_unstemmed | Mean Reversion Of The Fiscal Conduct In 24 Developing Countries |
| title_short | Mean Reversion Of The Fiscal Conduct In 24 Developing Countries |
| title_sort | mean reversion of the fiscal conduct in 24 developing countries |
| topic | H Social Sciences (General) |
| url | http://ir.unimas.my/id/eprint/17980/ http://ir.unimas.my/id/eprint/17980/ http://ir.unimas.my/id/eprint/17980/ http://ir.unimas.my/id/eprint/17980/1/MEAN%20REVERSION%20OF%20THE%20FISCAL%20CONDUCT%20%28abstract%29.pdf |