Hatzinikolaou, Dimitris; Simos, Theodore; Tsoka, Agathi - In: Economics Bulletin 33 (2013) 4, pp. 2817-2827
This paper improves the test for deficit sustainability developed by Hatzinikolaou and Simos (2013, henceforth HS) by taking into account structural breaks when deriving critical values for the test. Using quarterly data on the US current-account deficit, 1947.1-2012.2, we find that taking into...
