Fiscal Sustainability in Emerging Market Countries with an Application to Ecuador

45 Pages Posted: 25 Apr 2011

See all articles by Alejandro Izquierdo

Alejandro Izquierdo

Inter-American Development Bank (IDB) - Research Department

Carlos Díaz Alvarado

affiliation not provided to SSRN

Ugo Panizza

Graduate Institute of International and Development Studies (IHEID) - Department of Economics; CEPR

Date Written: August 2004

Abstract

This paper surveys the recent literature on fiscal sustainability, with particular emphasis on emerging market countries. It discusses the main elements that differentiate emerging market countries from industrial countries and then discusses how probabilistic models can help to evaluate fiscal sustainability in an uncertain environment. Based on this discussion, the paper uses Ecuador to illustrate an application of the probabilistic model, and of the framework to evaluate the impact of shocks to current account financing on sustainability.

Suggested Citation

Izquierdo, Alejandro and Alvarado, Carlos Díaz and Panizza, Ugo, Fiscal Sustainability in Emerging Market Countries with an Application to Ecuador (August 2004). IDB Working Paper No. 424, Available at SSRN: https://ssrn.com/abstract=1818713 or http://dx.doi.org/10.2139/ssrn.1818713

Alejandro Izquierdo

Inter-American Development Bank (IDB) - Research Department ( email )

1300 New York Ave., NW
Washington, DC 20577
United States

Carlos Díaz Alvarado

affiliation not provided to SSRN

Ugo Panizza

Graduate Institute of International and Development Studies (IHEID) - Department of Economics ( email )

Geneva Avenue de la Paix 11A
Geneva, 1202
Switzerland

CEPR ( email )

London
United Kingdom

Do you have a job opening that you would like to promote on SSRN?

Paper statistics

Downloads
47
Abstract Views
571
PlumX Metrics