International Review of Economics

, Volume 66, Issue 4, pp 369–397 | Cite as

Debt sustainability, structural breaks and nonlinear fiscal adjustment: empirical evidence from Algeria

  • Abderrahim ChibiEmail author
  • Sidi Mohamed Chekouri
  • Mohamed Benbouziane
Research Article


This research work seeks to examine a specific issue of the Algerian public debt sustainability using a nonlinear model approach. The results obviously indicate that the existence of threshold effects in the Algerian public debt depends on the sixth lag in oil price (US $ 80.85 per barrel). Thus, nonlinear unit root tests accept the null hypothesis of the unit roots; this intends to convey that the time series of public debt is not stationary and therefore cannot sustain the public debt in Algeria over the long term.


Public debt Sustainability Threshold effects STAR models Stationarity 

JEL Classification

E62 H62 C22 



We owe a huge debt of gratitude to: Timo Teräsvirta, Franses and van Dijk, Junsoo Lee, Aycan Hepsag and Sahnoune Nisrine, for providing JMulTi econometric package and the GAUSS, WinRATS code used in this paper.


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Copyright information

© Springer-Verlag GmbH Germany, part of Springer Nature 2019

Authors and Affiliations

  • Abderrahim Chibi
    • 1
    Email author
  • Sidi Mohamed Chekouri
    • 1
  • Mohamed Benbouziane
    • 2
  1. 1.Faculty of Economics and ManagementMaghnia University CenterMaghniaAlgeria
  2. 2.Faculty of Economics and ManagementTlemcen UniversityTlemcenAlgeria

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