Title A debt intolerance framework applied to Central America, Panama and the Dominican Republic / Geoffrey J. Bannister, Luis-Diego Barrot

Published [Washington, D.C.] : International Monetary Fund, 2011

Click on the following:
IMF eLibrary

Copies

Description 1 online resource (23 pages) : color illustrations Series IMF working paper, 1934-7073 ; WP/11/220 IMF working paper ; WP/11/220. Contents Cover Page; Title Page; Copyright Page; Abstract; Contents; I. Introduction; II. Background; A. Debt Targets in Theory; B. Debt Targets in Practice; III. The Original Debt Intolerance Approach; Figure 1. RRS (2003) Division of Countries Into Clubs; Table 1. Empirical Studies of Debt Thresholds; Table 2. Predicted IIR and Debt Intolerance Regions for Argentina and Malaysia; Table 3. Debt Thresholds Using Debt Intolerance Approach; IV. Revised Approach to Debt Intolerance; A. Introduction; B. The IIR and Debt; Figure 2. Scatter Plot of the IIR and Debt-to GDP; C. The Debt Intolerance Equation D. The Estimation MethodE. Estimation Results; Table 4. Estimation of the Debt Intolerance Equation; V. Application to CAPDR; Figure 3a. Costa Rica, Estimated Effect of Debt on the IIR; Table 5. IIR and Credit Ratings; Figure 3b. Costa Rica, IIR and Debt Target Thresholds; Table 6. CAPDR Thresholds Based on the Debt Intolerance Equation; Table 7. Credit Rating Classifications and the 2010 IIR Index; Table 8. Ranking of Countries by Debt Intolerance; VI. Conclusion; References; Footnotes Summary This paper presents an alternative method for calculating debt targets using the debt intolerance literature of Reinhart, Rogoff, and Savastano (2003) and Reinhart and Rogoff (2009). The methodology presented improves on the previous papers by using a dynamic panel approach, correcting for endogeneity in the regressors and basing the calculation of debt targets on credit ratings, a more objective criteria. In addition the study uses a new data base on general government debt covering 120 countries over 21 years. The paper suggests a ranking of Central America, Panama, and Dominican Republic (CAPDR) countries in terms of debt intolerance - an index which could be used to further investigate the main components of debt intolerance Notes At head of title: Western Hemisphere Department Title from PDF title page (IMF, viewed Jan. 11, 2012) "September 2011." Bibliography Includes bibliographical references (pages 22-23) Subject Debts, External -- Latin America -- Econometric models Credit ratings -- Latin America -- Econometric models Financial crises -- Latin America -- Econometric models Debts, External -- Econometric models Financial crises -- Econometric models Latin America Form Electronic book Author Barrot, Luis-Diego, author International Monetary Fund. Western Hemisphere Department, issuing body. ISBN 128355819X 9781283558198 9781463973025 1463973020 9781463904227 1463904223

  Permalink