Debt Sustainability Model
Debt Sustainability Model
Sustainable debt = ( GDP, Export , Debt =External +Domestic,
Interest Rate (Domestic or international ), Exchange Rate,… )
GDP, Export are robust.
Denote : D=debt ; X=GDP, Export; r= interest rate ; g= growth rate =[pic];
[pic] = debt service ratio, [pic]=debt ratio
Define : Sustainable Debt (SD)[pic]which must me constant or declining
[pic] ([pic])
In order the DS to be constant or declining the difference between Growth rate and Debt Growth must me 0,
[pic] [pic], putting [pic] and g=[pic] yields
[pic] , [pic][pic] ( 1 )
[pic][pic]=[pic] where [pic] debt ratio yields
[pic] [pic] [pic] (2)
[pic]
[pic]
[pic] (3)
The following table describes [pic]`s dependence from CPIA, the higher the CPIA the higher the [pic], [pic]usually is not a constant, but for the simplification of DSA we take it into the model as given. Appendices 1 can help us to verify above mentioned .
Table A.1. Policy-Dependent Debt and Debt-Service Thresholds Applied to Low-Income Countries
CPIA Country Policy and Institutional Assessment
NPV/GDP NPV/EXP DS
Strong (CPIA >=3.60) 60 300 35
Armenia 31.7 133.3 13.2
India 16.1 119.9 19.0
Medium (2.90 ................
................
In order to avoid copyright disputes, this page is only a partial summary.
To fulfill the demand for quickly locating and searching documents.
It is intelligent file search solution for home and business.
Related download
- worry about debt pennsylvania state university
- profile of the economy bureau of the public debt
- debt sustainability model
- is there an optimum level of debt
- chapter outline chapter 15 foreign debt
- chapter overview crawford s world
- three quite distinct difficulties that were built into the
- chapter 12 debt deficits and economic dynamics
- 15 fiscal policy budget deficits and government
Related searches
- sustainability in education
- sustainability engineering degree
- environmental sustainability degrees
- sustainability in architecture
- environment development and sustainability journal
- sustainability and environment
- education for sustainability pdf
- vanguard sustainability fund
- dow 2018 sustainability report
- colleges with sustainability degrees
- sustainability master programs
- what is a sustainability degree