A Guide to Public Sector Debt and Deficits

ACHIEVING SOCIAL OBJECTIVES THROUGH PRIVATE TRANSFERS: A Review

“…The dynamics of debt and the sustainability of deficits are particularly affected by the difference between the real interest rate and the growth rate of GNP (see Corbo, Goldstein, and Khan 1987;Anand and van Wijnbergen 1989;Morley and Fishlow 1987;and Buiter 1985). Assume first that the real interest rate on debt exceeds the growth rate.…”

Budget Deficit Sustainability and Revenue Expenditure Linkages in Major South Asian Economies

“…Summary indicators, a commonly employed approach to assess sustainability, are based on projections of future public debt and give the budgetary adjustment required to satisfy the IBC and reach a target level of debt (see e.g., Buiter et al, 1985;Blanchard et al, 1990;Aristovnik,2008). The value at risk framework uses stochastic simulations of the public sector balance sheet to study the degree of public sector solvency.…”

Excessive Deficits: Sense and Nonsense in the Treaty of Maastricht

“…The permanent primary gap was proposed in Buiter [1983Buiter [ , 1985Buiter [ and 1990 One feasible empirical approach is the one followed in Blanchard, Chouraqui, Hagemann and Sartor [1990) which implements empirically the myopic N-period primary gap measure for N = 1 and 5 years and attempts a preliminary N-period primary gap calculation for N = 40 years. Other measures of the primary gaps for the European countries have been computed by Wickens [1992).…”