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This paper attempts to re-evaluate the long-run macroeconomic relationship between government revenues and expenditures of the Greek economy over the period 1999–2010. The empirical analysis applies the newly developed asymmetric ARDL cointegration methodology of Shin et al. (2011) which permits more flexibility in the dynamic adjustment process towards equilibrium, than in the classical case of a...
Using historical data from the Office of Management and Budget, the Congressional Budget Office, and the Organization for Economic Co-operation and Development, the author argues that that the current method of expressing the federal deficit and/or debt as a percentage of GDP obscures the danger posed by potentially higher interest rates. While the debt and deficit may still be at manageable levels,...
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