Swiss Journal of Economics and Statistics

, Volume 144, Issue 1, pp 57–83 | Cite as

Sustainability of Swiss Fiscal Policy

  • Gebhard Kirchgässner
  • Silika Prohl
Open Access


We examine whether Swiss federal fiscal policy was sustainable over the period from 1900 to 2002. We perform unit root and cointegration tests for federal revenues and expenditures, taking into account a structural shift in the budgetary process related to World War II. We find sustainability considering the entire period. However, splitting the sample into two sub-samples before and after World War II, the results do much less support sustainability.


Sustainability Budget Deficit Cointegration Structural Breaks 


H62 H63 


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Copyright information

© Swiss Journal of Economics and Statistics 2008

Authors and Affiliations

  1. 1.SIAW-HSGUniversity of St. GallenSt. GallenSwitzerland

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