International records / OpenAlex research

Dynamics of Budget Deficit and Macroeconomic Fundamentals: Further Evidence from Nigeria

Using quarterly time-series data from 1970-2012, this paper examines the responses of budget deficits to selected macroeconomic fundamentals in Nigeria.Although budget deficit responds with a positive movement for every one standard deviation positive shock to real gross domestic product at the early stage, subsequent positive shocks or variations in real gross domestic product elicit a negative response from budget balance right from the 10th period down to the 172nd period.Budget deficit shows signs of decline at the initial stage in response to a positive innovation in real interest rate.Ho…