International Evidenceon Fiscal Solvency; Is Fiscal Policy "Responsible"?
Enrique Mendoza () and
Jonathan Ostry ()
No 2007/056, IMF Working Papers from International Monetary Fund
This paper looks at fiscal solvency and public debt sustainability in both emerging market and advanced countries. Evidence of fiscal solvency, in the form of a robust positive conditional relationship between public debt and the primary fiscal balance, is established in both groups of countries. Evidence of fiscal solvency is much weaker, however, at high debt levels. These findings suggest that many industrial and emerging market economies, including several where fiscal solvency has been the subject of recent debates, appear to conduct fiscal policy responsibly. Yet our results cannot reject the hypothesis of fiscal insolvency in groups of countries with high debt ratios.
Keywords: Fiscal stance; Public debt; Solvency; Fiscal policy; Expenditure; WP,emerging market,government purchase,growth rate (search for similar items in EconPapers)
References: Add references at CitEc
Citations: View citations in EconPapers (1) Track citations by RSS feed
Downloads: (external link)
Our link check indicates that this URL is bad, the error code is: 403 Forbidden
Journal Article: International evidence on fiscal solvency: Is fiscal policy "responsible"? (2008)
Working Paper: International Evidence on Fiscal Solvency: Is Fiscal Policy "Responsible"? (2007)
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:imf:imfwpa:2007/056
Ordering information: This working paper can be ordered from
Access Statistics for this paper
More papers in IMF Working Papers from International Monetary Fund International Monetary Fund, Washington, DC USA. Contact information at EDIRC.
Bibliographic data for series maintained by Jim Beardow () and Hassan Zaidi ( this e-mail address is bad, please contact ).