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...

This study probed the macroeconomic effects of budget deficit in Nigeria. Specifically, it seeks to probe effect on private investment and public Nigeria by adopting ADF unit root test ARDL model, Granger Causality short-run diagnostics stability using annual time series data covering 37 years from 1981 2019. The variables employed include – Growth rate real gross domestic product, (Gross Fixed...