Title

The Budget Deficit and the Arbitrage Pricing Theory

Document Type

Article

Publication Date

1993

Publication Source

Economics Letters

Abstract

Non-linear SUR techniques are used to demonstrate that the budget deficit is a priced factor in the Arbitrage Pricing Theory. The results also indicate that unexpected increases in the deficit lower stock prices.

Inclusive pages

313-317

ISBN/ISSN

0165-1765

Publisher

Elsevier

Volume

41

Issue

3

Peer Reviewed

yes