Budget deficit-macroeconomic variables nexus in Kenya

Abstract

Aim/purpose – The aim of this paper was to establish the nexus between a budget deficit and selected macroeconomic variables in Kenya. This adds to the existing literature while the methodology and choice of the econometric tools used improve the predictability of the link between a budget deficit and macroeconomic variables. The results are relevant to policy makers as they may help improve understanding of budget deficit management.

Keywords

• budget deficit
• selected macroeconomic variables, kenya
• h60
• h62
• h68