Leachman, Lori; Francis, Bill - In: Applied Economics 34 (2002) 9, pp. 1121-1132
This paper uses cointegration and multicointegration analysis to explore the issue of twin deficits for the USA in the post-World War II period. The results suggest that prior to 1974 the systems of fiscal and foreign sector variables exhibit multicointegration. These results do not rule out...