Public Debt Sustainability Under Uncertainty: An Invariant Set Approach
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Summary:
The paper offers an approach to assessing the sustainability of public debt taking into account the effect of fiscal policy on output, as well as uncertainty in the model parameters and system dynamics. Uncertainty is specified in general terms, and the analysis is based on the notion of invariant sets. Examples are provided to illustrate how the method can be applied in practice.
Series:
Working Paper No. 2017/057
Subject:
Debt sustainability Debt sustainability analysis Fiscal stance Output gap Public debt
English
Publication Date:
March 13, 2017
ISBN/ISSN:
9781475586251/1018-5941
Stock No:
WPIEA2017057
Pages:
28
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