Assessing Fiscal Stress
By Gabriel Dobrescu, Iva Petrova, Nazim Belhocine, E. Baldacci. Social Science Research Network, 2011
119 citations recorded by the source corpus.
This paper develops a new index which provides early warning signals of fiscal sustainability problems for advanced and emerging economies. Unlike previous studies, the index assesses the determinants of fiscal stress periods, covering public debt default as well as near-default events. The fiscal stress index depends on a parsimonious set of fiscal indicators, aggregated using the approach proposed by Kaminsky, Lizondo and Reinhart (1998). The index is used to assess the build up of fiscal stress over time since the mid-1990s in advanced and emering economies. Fiscal stress has increased recently to record-high levels in advanced countries, reflecting raising solvency risks and financing needs. In emerging economies, risks are lower than in mature economies owing to sounder fiscal fundamentals, but fiscal stress remains higher than before the crisis.
Subfields: Economics and Econometrics, Finance
View Paper: https://www.semanticscholar.org/paper/999290d9cd9dc89e3d57677fbbaa16048772ead7
How researchers see this paper
The researchers whose trusted networks rank it highest, strongest advocate first. Every researcher gets a different order.
In Economics and Econometrics
In Finance
Citations in the corpus
- A Cross-Country Database of Fiscal Space (2017, unknown): “Currency composition and maturity structure variables are commonly used in the literature on early warning exercises of fiscal problems (Baldacci et al. 2011).”
- Global Waves of Debt: Causes and Consequences (2021, background): “Other studies dating crises include, for example, Baldacci et al. (2011); Reinhart and Rogoff (2009); and Romer and Romer (2017). 7 Table A1.”