A balance‐sheet approach to fiscal sustainability

This paper proposes an alternative methodology to assess fiscal sustainability. Our balance-sheet approach (BSA) relies on estimating separately all of a government's assets and liabilities as opposed focusing only the burden explicit liabilities. In our approach, are primarily present discounted value taxes, include but also expenditures. Using liabilities, we compute balance sheet, therefore net worth. We then evaluate response worth growth, commodity prices or real exchange rate shocks. By computing for worth, allows assessment sustainability that is less reliant analyst's assumptions than traditional debt analysis (DSA).