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dc.titleDebt Affordability in Developed and Emerging Market Economies: The Role of Fiscal Rules
dc.contributor.authorValencia, Oscar
dc.contributor.authorGomez-Gonzalez, Jose E.
dc.contributor.authorSánchez, Gustavo
dc.contributor.orgunitFiscal Management Division
dc.coverageLatin America and the Caribbean
dc.date.available2022-05-20T08:33:58
dc.date.issue2022-05-20T00:05:00
dc.description.abstractThis paper studies the effect of fiscal rules on debt affordability in a large set of developed and emerging market economies, using a panel data model which allows the inclusion of weakly exogenous regressors, and which deals appropriately with cross-sectional dependence. The results show a positive and significant effect of fiscal rule implementation on public debt affordability which is robust to various model specifications. The effect is stronger for emerging market economies which benefit from the implementation of any fiscal rule. In contrast, developed countries benefit only from high-quality fiscal rules. The findings have important policy implications for fiscal management, especially in emerging market economies.
dc.format.extent14
dc.identifier.doihttp://dx.doi.org/10.18235/0004267
dc.identifier.urlhttps://publications.iadb.org/publications/english/document/Debt-Affordability-in-Developed-and-Emerging-Market-Economies-The-Role-of-Fiscal-Rules.pdf
dc.language.isoen
dc.publisherInter-American Development Bank
dc.subjectDebt Restructuring
dc.subjectEmerging Market
dc.subjectFiscal Rule
dc.subjectEconomy
dc.subjectTraditional Economy
dc.subjectFiscal Policy
dc.subject.jelcodeC33 - Panel Data Models • Spatio-temporal Models
dc.subject.jelcodeF34 - International Lending and Debt Problems
dc.subject.jelcodeG15 - International Financial Markets
dc.subject.keywordscross-sectional dependence;debt affordability;weakly exogenous regressors
dc.typeWorking Papers
idb.identifier.pubnumberIDB-WP-01344
idb.operationRG-T3751
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