General Equilibrium Perception on Twin Deficits Hypothesis: An Empirical Evidence for the U.S.

General Equilibrium Perception on Twin Deficits Hypothesis: An Empirical Evidence for the U.S.

From the general equilibrium perceptive, this study proposes the inclusion of private savings and investments in examining twin deficits hypothesis. Using U.S. data, the empirical results support twin deficits hypothesis but the budget deficit’s elasticity is decreasing from unity to 0.43.

Bibliographic Details
Main Authors: Tuck , Cheong Tang, Lau, Evan
Format: Working Paper
Language:English
Published: Monash University Business and Economics 2009
Subjects:
HB Economic Theory
HG Finance
Online Access:http://ir.unimas.my/id/eprint/3215/
http://ir.unimas.my/id/eprint/3215/1/General%2BEquilibrium%2BPerception%2Bon%2BTwin%2BDeficits%2BHypothesis%2B-%2BAn%2BEmpirical%2BEvidence%2Bfor%2Bthe%2BU.S.%20%281%29.pdf

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