A Debt Intolerance Framework Applied to Central America, Panama and the Dominican Republic

 
Author/Editor: Bannister, Geoffrey J. ; Barrot, Luis-Diego
 
Publication Date: September 01, 2011
 
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Disclaimer: This Working Paper should not be reported as representing the views of the IMF. The views expressed in this Working Paper are those of the author(s) and do not necessarily represent those of the IMF or IMF policy. Working Papers describe research in progress by the author(s) and are published to elicit comments and to further debate
 
Summary: This paper presents an alternative method for calculating debt targets using the debt intolerance literature of Reinhart, Rogoff, and Savastano (2003) and Reinhart and Rogoff (2009). The methodology presented improves on the previous papers by using a dynamic panel approach, correcting for endogeneity in the regressors and basing the calculation of debt targets on credit ratings, a more objective criteria. In addition the study uses a new data base on general government debt covering 120 countries over 21 years. The paper suggests a ranking of Central America, Panama, and Dominican Republic (CAPDR) countries in terms of debt intolerance - an index which could be used to further investigate the main components of debt intolerance.
 
Series: Working Paper No. 11/220
Subject(s): Central America | Cross country analysis | Dominican Republic | Panama | Public debt

Author's Keyword(s): CAPDR | Central America | Debt | Dominican Republic | Panama
 
English
Publication Date: September 01, 2011
Format: Paper
Stock No: WPIEA2011220 Pages: 23
Price:
US$18.00 (Academic Rate:
US$18.00 )
 
 
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