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Article
The sustainability of South African fiscal policy: an historical perspective
Applied Economics (2009)
  • John Thornton
  • lusine Lusinyan, International Monetary Fund
Abstract
This article examines the issue of long-term fiscal sustainability in South Africa by applying a battery of recently developed unit root and cointegration tests to real revenue and spending data the period 1895 to 2005. The results provide evidence that, allowing for structural breaks, South African revenue and spending during this period were I(1) series and cointegrated, with the estimated long-run equilibrium relation supporting the presence of a weak deficit sustainability condition.
Keywords
  • Fiscal sustainability,
  • unit roots,
  • cointegration
Publication Date
March, 2009
Citation Information
John Thornton and lusine Lusinyan. "The sustainability of South African fiscal policy: an historical perspective" Applied Economics Vol. 41 Iss. 7 (2009)
Available at: http://works.bepress.com/john_thornton/15/