This study models the relationship between budget deficit and trade deficit by using Autoregressive Distributed Lag (ARDL) and Dynamic Ordinary Least Square (DOLS) empirical estimation methods. The empirical results indicate that budget deficit leads to trade deficit in the long run, and it will...

The recent global financial crisis has important implications for the future of financial markets in that it underscores the need for assessing the health of systemically important economies. In this study, we construct a macroeconomic credit risk model, employing data from 1995Q1 to 2009Q1, to...