budget deficit constitutes a major fiscal indicator. it has major important ramification on macro-economic position of all nations. in developing countries generally, and in iran specifically, governments are likely to spend more on miscellaneous as well as differentiated obligations causing high expenditure costs with respect to their limited revenues. this causes a budget deficit to incur. th...

The title of Ball and Mankiw’s paper asks: What Do Budget Deficits Do? One answer to that question is a restatement on the pure theory of debt-financed budget deficits. An alternative answer would develop the effects on the U.S. or world economies on the assumption that the U.S. federal government balances its budget by reducing spending, instead of raising tax rates, or running deficits equal ...

3. In practice, yearto-year changes i n the federal debt do not precisely equal the corresponding annual federal budget deficits. The inequality results because Congress borrows to finance net spending on certain off-budget programs, and because the Treasury finances a small portion of the deficit through changes i n various assets such as its cash balances. Here we use the term deficit to refe...

Public debt and budget deficits arouse great concern. Households, financiers, and social scientists expend great energy on this topic. While there are many dimensions to the problem, I would tend to organize my thoughts around three main questions. First, there is definition and measurement. What are the constituents of the deficit? Issues such as contingent liabilities, unfunded liabilities, c...

Kitchen examines how US budget deficit news affects asset prices and concludes that news of lower deficits reduces the inflation risk premium. This paper constructs narrative histories of several deficit-reduction laws to identify when markets learned that deficits would fall. It then estimates a multi-factor model that allows the inflation risk premium to vary following news of deficit-reducti...

In this study, sustainability of budget deficits in Turkey is examined empirically for the pe- riod from January 2006 to September 2020, using time series techniques based on monthly data, under intertemporal constraint approach. analysis phase, Johansen cointegration method was used long-term relationship series. Analysis results indicated that income and expenditure are not cointegrated. It c...