Race to the Debt Trap? - Spatial Econometric Evidence on Debt in German Municipalities

New Statistical and Econometric Approaches to Assessing Financial Processes (Banking Sector, Public Debt, Financial Management)

The results of studies on the development of new statistical and econometric approaches to modeling budget policy is presented. The obtained results are applied on the example of tax revenue modeling. The authors note the importance of ensuring transparency and predictability of state financial policy, the realisticness of economic forecasts, because this is the basis of budget modeling. It is ...

An Assessment of Pakistan ' s External Debt Sustainability Escaping the Debt Trap

The findings, interpretations and conclusions expressed in this study are those of the authors and should not be attributed in any manner to the Asian Development Bank (ADB) or the countries it represents. The Asian Development Bank encourages use of the material presented herein, with appropriate credit. Foreword ADB and Pakistan have been development partners for almost 35 years. The first lo...

Can Debt Affect Your Health? Cross Country Evidence on the Debt-Health Nexus

We investigate the relationship between household debt and health outcomes for OECD countries over the period 1995 to 2012. Using a dataset of aggregated, standardized and objective measures of household debt and health outcomes, we estimate an instrumental variable (GMM) model in order to deal with endogeneity and reverse causality concerns between health and debt. We find that higher househol...

Comment on Debt Deflation: Theory and Evidence

Critical debt and debt dynamics

We study the debt dynamics and sustainable debt for an open economy which borrows from abroad in order to "nance consumption. To service the debt the country may exploit a renewable resource. We show that there is for every resource stock R a critical level BH(R) of debt above which debt tends to in"nity but below which it may be steered to zero. We demonstrate how to compute BH(R) using an ODE...