Probabilistic Sustainability of Public Debt A Vector Autoregression Approach for Brazil, Mexico, and Turkey

Author/creator Tanner, Evan Author
Other author Samak, Issouf Author
Format Electronic
Publication InfoWashington : International Monetary Fund
Description63 p.
Supplemental ContentFull text available from Ebook Central - Academic Complete

Summary Annotation This paper examines the sustainability of fiscal policy under uncertainty in three emerging market countries, Brazil, Mexico, and Turkey. for each country, we estimate a vector autoregression (VAR) that includes fiscal and macroeconomic variables. Retrospectively, a historical decomposition shows by how much debt accumulation reflects unsustainable policy, adverse shocks, or both. Prospectively, Monte Carlo techniques reveal the primary surplus that is required to keep the debt/GDP ratio from rising in all but the worst 50 percent, 25 percent, and 10 percent of circumstances. Such a value-at-risk approach presents a clearer menu of policy options than currently used frameworks.
Access restrictionAvailable only to authorized users.
Technical detailsMode of access: World Wide Web
Genre/formElectronic books.
ISBN9781451910087
ISBN1451910088 (E-Book) Active Record
Stock number00013468

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