Premise: Panizza, NBER Working Paper No. 20316 Issued in July 2014 NBER Program(s): A Surplus of Ambition: Can Europe Rely on Large Primary Surpluses to Solve its Debt Problem? show that, historically, large and sustained primary surpluses are rare, so one should not assume in DSAs that a country can maintain very high surpluses for very long. Specifically they establish that the maintenance of a surplus of 5 per cent for 10 years is a very rare event, while a surplus of at least 3 per cent is uncommon, covering 11 per cent of the 113 ten-year episodes in their sample
Statement: Specifically they establish that the maintenance of a surplus of 5 per cent for 10 years is a rare event, while a surplus of at least 3 per cent is rare, covering 11 per cent of the 113 ten-year episodes in their sample
Relationship: contradiction