Skip to main content
SpringerLink
Log in

Financial- market effects of Federal Government budget deficits: Comment

  • Shorter Papers & Comments
  • Published:
Weltwirtschaftliches Archiv Aims and scope Submit manuscript

Conclusion

In this comment we have demonstrated that Cebula’s estimation results depend upon the choice of the sample period and the chosen interest rate. It is also argued that estimation results with non-stationary variables are unreliable. We have chosen an alternative model specification and have shown that the results change remarkably.

This is a preview of subscription content, log in via an institution to check access.

Access this article

Log in via an institution

Price excludes VAT (USA)
Tax calculation will be finalised during checkout.

Instant access to the full article PDF.

Institutional subscriptions

Similar content being viewed by others

References

  • Cebula, Richard J., “Federal Government Budget Deficits and Interest Rates: An Empirical Analysis for the United States, 1955–1984”.Public Finance, Vol. 43, 1988, pp. 337–348.

    Google Scholar 

  • —,Kimberly Bates, Louise Marks, Allison Roth, “Financial-Market Effects of Federal Government Budget Deficits”.Weltwirtschaftliches Archiv, Vol. 124, 1988, pp. 729–734.

    Article  Google Scholar 

  • Dewald, William G., Jerry G. Thursby, Richard G. Anderson, “Replication in Empirical Economics: The Journal of Money, Credit and Banking Project”.The American Economic Review, Vol. 76, 1986, pp. 587–603.

    Google Scholar 

  • Evans, Paul, “Do Large Deficits Produce High Interest Rates?”.The American Economic Review, Vol. 75, 1985, pp. 68–87.

    Google Scholar 

  • —, “Interest Rates and Expected Deficits in the United States”.Journal of Political Economy, Vol. 95, 1987, pp. 34–55.

    Article  Google Scholar 

  • Granger, Clive W.J., Paul Newbold,Forecasting Economic Time Series. New York 1977.

  • Hoelscher, Gregory, “Federal Borrowing and Short Term Interest Rates”.Southern Economic Journal, Vol. 50, 1983, pp. 319–333.

    Article  Google Scholar 

  • Holloway, Thomas M., “The Cyclically Adjusted Federal Budget and Federal Debt: Revised and Updated Estimates”.Survey of Current Business, Vol. 66,1986, pp. 11–17.

    Google Scholar 

  • Mascara, Angelo, Allan H. Meltzer, “Long and Short Term Interest Rates in a Risky World”.Journal of Monetary Economics, Vol. 12, 1983, pp. 485–518.

    Article  Google Scholar 

Download references

Authors
  1. Jakob de Haan
    View author publications

    You can also search for this author in PubMed Google Scholar

  2. Dick Zelhorst
    View author publications

    You can also search for this author in PubMed Google Scholar

About this article

Cite this article

de Haan, J., Zelhorst, D. Financial- market effects of Federal Government budget deficits: Comment. Weltwirtschaftliches Archiv 126, 388–392 (1990). https://doi.org/10.1007/BF02706366

Download citation

  • Issue Date:

  • DOI: https://doi.org/10.1007/BF02706366

Keywords

Search

Navigation