“…More recently, time-series econometrics have been used to test aspects of the present value constraint (e.g. Ghatak and Sanchez-Fung, 2007;Jibao, Schoeman and Naraidoo, 2010;Lusinga and Thornton, 2009;Thiswaka-Kashala, 2006). Celasum, Debrun and Ostry (2007), while Burger, Stuart, Jooste and Cuevas (2012) estimate fiscal reaction functions and use various methods (OLS, VAR, TAR, GMM, state-space modelling and a VECM) to check the robustness of the results.…”