2020
DOI: 10.1057/s41294-020-00130-3
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Sustainable Debt Policy Rules and Growth in a Small Open Economy Model: Is a Balanced Government Budget Worthwhile?

Abstract: In this paper our objective is to analyze sustainable debt policy rules and economic growth using a model of endogenous economic growth theory. For the government it is possible to run into debt, but, the primary surplus is a positive linear function of the debt-to-GDP ratio which guarantees that public debt is sustainable. We analyze different sustainable debt policies in this small open economy model of endogenous growth with public capital accumulation, as well we take transitions into account. We investiga… Show more

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Cited by 3 publications
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“…the completeness and timeliness of central government records of debts, loan guarantees and debtrelated transactions, as well as the completeness and reliability of the state loan registration system and the availability of documented debt registration and monitoring procedures. The debt management reform plans (DeMRPs) are developed with this in mind, including the expected results, results of specific actions, sequence and stages, budgeting, and resource allocation (Dascher: 2020). In addition, the MTDS and the DSA are being developed.…”
Section: Literature Reviewmentioning
confidence: 99%
“…the completeness and timeliness of central government records of debts, loan guarantees and debtrelated transactions, as well as the completeness and reliability of the state loan registration system and the availability of documented debt registration and monitoring procedures. The debt management reform plans (DeMRPs) are developed with this in mind, including the expected results, results of specific actions, sequence and stages, budgeting, and resource allocation (Dascher: 2020). In addition, the MTDS and the DSA are being developed.…”
Section: Literature Reviewmentioning
confidence: 99%