Fan, Jingwen; Arghyrou, Michael G. - 2011
We test for fiscal policy sustainability in the UK for the period 1955-2006. We find evidence of sustainability with … three structural breaks, respectively occurring in the early 1970s, early 1980s and late 1990s. UK fiscal policy has been … evidence of non-linear fiscal adjustment, with UK authorities not reacting to relatively small deficits; but correcting …
