1.

Record Nr.

UNINA9910822178303321

Autore

Hostland Doug

Titolo

Specification of a stochastic simulation model for assessing debt sustainability in emerging market economies / / prepared by Doug Hostland and Philippe Karam

Pubbl/distr/stampa

[Washington, D.C.], : International Monetary Fund, Research Dept., c2006

ISBN

1-4623-7300-3

1-4527-0271-3

1-283-51768-X

9786613830135

1-4519-0981-0

Edizione

[1st ed.]

Descrizione fisica

1 online resource (35 p.)

Collana

IMF working paper ; ; WP/06/268

Altri autori (Persone)

KaramPhilippe D

Soggetti

Debts, External - Developing countries

Economic development - Developing countries

Lingua di pubblicazione

Inglese

Formato

Materiale a stampa

Livello bibliografico

Monografia

Note generali

"December 2006."

Nota di bibliografia

Includes bibliographical references.

Nota di contenuto

""Contents""; ""I. OVERVIEW""; ""II. MODEL STRUCTURE""; ""III. CALIBRATION METHODOLOGY""; ""IV. MODEL PROPERTIES""; ""V. CONCLUSIONS""; ""REFERENCES""

Sommario/riassunto

This paper documents the specification of a model that was constructed to assess debt sustainability in emerging market economies. Key features of the model include external and fiscal sectors, which allow assessment of external and public debt in a unified framework; public and external debt, which both have an explicit maturity structure along with a distinction between denomination in domestic versus foreign currency to facilitate debt management analysis; monetary and fiscal policy, which are endogenous and specified using explicit forward-looking policy rules; an endogenous risk premium on public and external debt; and a mechanism for invoking a sudden stop in private capital flows. The paper provides an overview of the basic structure of the model, outlines the methodology used to calibrate the parameters, and illustrates the key properties of



the model with reference to dynamic responses of selected variables to shocks of interest.