Open AccessPosted Content
Code and data files for "Fiscal Policy and Default Risk in Emerging Markets"
TLDR
In this article, all Matlab and C++ programs necessary to produce the results of the article were described and a spreadsheet with Mexican data was also provided, along with a spreadsheet containing Mexican data.Abstract:
All Matlab and C++ programs necessary to produce the results of the article. There is also a Excel spreadsheet with Mexican data.read more
Citations
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Journal ArticleDOI
A General Equilibrium Model of Sovereign Default and Business Cycles
Enrique G. Mendoza,Vivian Z. Yue +1 more
TL;DR: In this paper, a general equilibrium model of both sovereign default and business cycles is proposed, which explains several features of cyclical dynamics around deraults, countercyclical spreads, high debt ratios and key business cycle moments.
Journal ArticleDOI
How is Tax Policy Conducted over the Business Cycle
Carlos A. Vegh,Guillermo Vuletin +1 more
TL;DR: In this article, the authors build a dataset on tax rates for 62 countries for the period 1960-2013 that comprises corporate income, personal income, and value-added tax rates and find that tax policy is a cyclical in industrial countries but mostly procyclical in developing countries.
Journal ArticleDOI
Heterogeneous borrowers in quantitative models of sovereign default
TL;DR: In this article, the authors extend the model used in recent quantitative studies of sovereign default, allowing policymakers of different types to stochastically alternate in power, and show that a default episode may be triggered by a change in the type of policymaker in office, and that such a default is likely to occur only if there is enough political stability and if policymakers encounter poor economic conditions.
Book ChapterDOI
What is a Sustainable Public Debt
TL;DR: In this article, the authors identify critical flaws in the traditional approach to evaluate debt sustainability, and examine three alternative approaches that provide useful econometric and model-simulation tools to analyze debt sustainability.
Journal ArticleDOI
Quantitative Properties of Sovereign Default Models: Solution Methods Matter
TL;DR: In this paper, the authors study the sovereign default model that has been used to account for the cyclical behavior of interest rates in emerging market economies and show that this method necessitates a large number of grid points to avoid generating spurious interestrate movements.
References
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Journal ArticleDOI
Country and industry effects in corporate bond spreads in emerging markets
TL;DR: In this article, the authors use corporate bond data from firms belonging to 13 emerging markets and eight industries from 2007 to 2013 to study whether and how country and industry effects determine the spread between their yield and the respective sovereign debt yield.
Dissertation
Determinants and consequences of fiscal procyclicality and sustainability
TL;DR: In this article, the authors examined the determinants of fiscal procyclicality and sustainability with special reference to the role of fiscal rules, and assessed the impact of both fiscal prosci city and sustainable on economic growth, and found that the introduction of the fiscal rules not only help achieve both countercyclical and sustainable fiscal policy, but also boost economic growth indirectly by stimulating counter-cyclical fiscal policy.
Journal ArticleDOI
Creditworthiness and access to finance: a study of SMEs in the Malaysian manufacturing industry
TL;DR: In this article, the authors evaluated the relationship between the dimensions of creditworthiness and access to finance of small and medium-sized enterprises (SMEs) in Malaysia, with creditworthiness as the mediating variable.
Journal ArticleDOI
Income inequality and sovereign default
Kiyoung Jeon,Zeynep Kabukcuoglu +1 more
TL;DR: In this article, the authors study how income inequality affects government borrowing and default decisions and show that increasing income inequality within a country increases the probability of default significantly and that the effect of output shocks is larger than the impact of inequality shocks.
Posted Content
Fiscal Policy, Sovereign Risk, and Unemployment
TL;DR: In this article, the authors analyze the optimal fiscal policy and study quantitatively whether austerity or stimulus is optimal during an economic slump, concluding that an increase in government spending during a recession stimulates economic activity and reduces unemployment.