Refinements to the probabilistic approach to fiscal sustainability analysis
By: Nathaniel Frank, Eduardo Ley.
Contributors: Ley, Eduardo.; World Bank.
Series: Policy research working paper -- 4709; Policy research working papers (Online) -- 4709.
Publisher: World Bank
Published: 2008
Place of publication: [Washington, D.C
Language: eng
Format: Electronic resource
Description: "This paper relaxes some key assumptions in the probabilistic approach to fiscal sustainability.  First, the authors identify structural breaks over the sample period used to estimate the covariance matrix of the shocks to the debt ratios.  Second, the assumption of normality of the shocks is dropped by modeling their respective empirical distribution directly, which makes it possible to quantify asymetries and thick tails.  Third, the use of fiscal reaction functions is avoided by focusing attention on debt-stabilizing balances. "--World Bank web site.
Notes: Title from PDF file as viewed on 5/18/2009.

Includes bibliographical references.

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Mode of access: World Wide Web.