Government Financial Assets And Debt Sustainability

Author : Ms.Camila Henao Arbelaez,Nelson Sobrinho
Publisher : International Monetary Fund
Page : 41 pages
File Size : 49,9 Mb
Release : 2017-07-25
Category : Business & Economics
ISBN : 9781484311059

Get Book

Government Financial Assets and Debt Sustainability by Ms.Camila Henao Arbelaez,Nelson Sobrinho Pdf

Do government financial assets help improve public debt sustainability? To answer this question, we assemble a comprehensive dataset on government assets using multiple sources and covering 110 advanced and emerging market economies since the late 1980s. We then use this rich database to estimate the impact of assets on two key dimensions of debt sustainability: borrowing costs and the probability of debt distress. Government financial assets significantly reduce sovereign spreads and the probability of debt crises in emerging economies but not in advanced economies, and the effect varies with asset characteristics, notably liquidity. Government finacial assets also help discriminate countries across the distribution of sovereign spreads, thus signaling information about emerging economies’ creditworthiness.

Author : Camila Henao Arbelaez
Publisher : Unknown
Page : 41 pages
File Size : 50,8 Mb
Release : 2017
Category : Electronic
ISBN : OCLC:1293391008

Get Book

Government Financial Assets and Debt Sustainability by Camila Henao Arbelaez Pdf

Do government financial assets help improve public debt sustainability? To answer this question, we assemble a comprehensive dataset on government assets using multiple sources and covering 110 advanced and emerging market economies since the late 1980s. We then use this rich database to estimate the impact of assets on two key dimensions of debt sustainability: borrowing costs and the probability of debt distress. Government financial assets significantly reduce sovereign spreads and the probability of debt crises in emerging economies but not in advanced economies, and the effect varies with asset characteristics, notably liquidity. Government finacial assets also help discriminate countries across the distribution of sovereign spreads, thus signaling information about emerging economies' creditworthiness.

Author : Valeriano F. García
Publisher : World Bank Publications
Page : 42 pages
File Size : 55,6 Mb
Release : 1997
Category : Debt
ISBN : 8210379456XXX

Get Book

The Demand for Base Money and the Sustainability of Public Debt by Valeriano F. García Pdf

Author : Mr.Jorge A. Chan-Lau,Mr.Andre Santos
Publisher : International Monetary Fund
Page : 31 pages
File Size : 55,9 Mb
Release : 2010-01-01
Category : Business & Economics
ISBN : 9781451961676

Get Book

Public Debt Sustainability and Management in a Compound Option Framework by Mr.Jorge A. Chan-Lau,Mr.Andre Santos Pdf

This paper introduces the Asset and Liability Management (ALM) compound option model. The model builds on the observation that the public sector net worth in a multi-period setting corresponds to the value of an option on an option on total government assets. Hence, the ALM compound option model is better suited for analyzing and evaluating the risk profile of public debt than existing one-period models, and is especially useful for analyzing the soundness of exit strategies from the large fiscal expansions undertaken by G-20 countries in the wake of the recent financial crisis. As an illustration, the model is used to analyze the risk profile and sustainability of Australia's public debt under different policies.

Author : Matteo Ruzzante
Publisher : International Monetary Fund
Page : 55 pages
File Size : 42,8 Mb
Release : 2018-04-24
Category : Business & Economics
ISBN : 9781484354070

Get Book

Financial Crises, Macroeconomic Shocks, and the Government Balance Sheet: A Panel Analysis by Matteo Ruzzante Pdf

Government financial assets are increasingly recognized as playing an important role in assessing fiscal sustainability. However, very little research has been done on the dynamics of government financial assets compared to liabilities. In this paper, we investigate the impact of recent financial crises and macroeconomic shocks on government balance sheets, decomposing the separate effects on financial assets and liabilities. Using quarterly Government Finance Statistics (GFS) data, we analyze a panel of 27 countries over the period 1999Q1-2017Q1 through fixed effects and panel VAR techniques. Financial crises are shown to deteriorate the net financial worth of governments, but no significant impact is found on assets suggesting that they are not being used as fiscal buffers in bad times. On the contrary, countries that suffered both financial and banking crises experienced an “artificial” increase of their asset position through bank bailouts. Macroeconomic shock analyses reveal that government balance sheet items are countercyclical, but important asymmetries are found in their dynamics.

Author : International Monetary Fund
Publisher : International Monetary Fund
Page : 59 pages
File Size : 50,9 Mb
Release : 2011-05-08
Category : Business & Economics
ISBN : 9781498338639

Get Book

Modernizing the Framework for Fiscal Policy and Public Debt Sustainability Analysis by International Monetary Fund Pdf

Modernizing the framework for fiscal policy and public debt sustainability analysis (DSA) has become necessary, particularly in light of the recent crisis and rising sustainability concerns in some advanced economies. While recognizing the inherently challenging nature of such analysis, this paper highlights areas where improvements are needed and makes both general and specific proposals on how this could be achieved. It also proposes to move to a risk-based approach to DSAs for all market-access countries, where the depth and extent of analysis would be commensurate with concerns regarding sustainability, while a reasonable level of standardization would be maintained.

Author : Ms.Elva Bova,Mr.Robert Dippelsman,Ms.Kara C Rideout,Ms.Andrea Schaechter
Publisher : International Monetary Fund
Page : 44 pages
File Size : 44,6 Mb
Release : 2013-05-02
Category : Business & Economics
ISBN : 9781484315453

Get Book

Another Look at Governments’ Balance Sheets by Ms.Elva Bova,Mr.Robert Dippelsman,Ms.Kara C Rideout,Ms.Andrea Schaechter Pdf

When discussing debt reduction strategies, little attention has been given to the role of governments’ nonfinancial assets. This is in part because data are scarce. Drawing on various data sources, this paper looks at the size, composition, and management of state-owned nonfinancial assets across 32 economies, with particular focus on the advanced G-20 economies. We find that reported nonfinancial assets comprise mostly structures (such as roads and buildings) and,when valued, land. These assets have increased over time, mostly due to higher property and commodity prices, and are, in large part, owned by subnational governments. Many countries have launched reforms with a view to streamlining public administrations, but receipts and savings have been rather small so far. Governments tend to consider relatively small sets of assets to be disposable, though preferences could change in the future. A potential source for future revenues could be greater reliance on user charges, such as road tolls. In most cases, a first step for more effective asset management has to be the expansion and improvement of data compilation.

Author : Michael Carlberg,Arne Hansen
Publisher : Springer Science & Business Media
Page : 220 pages
File Size : 51,9 Mb
Release : 2012-12-13
Category : Business & Economics
ISBN : 9783642329678

Get Book

Sustainability and Optimality of Public Debt by Michael Carlberg,Arne Hansen Pdf

This book studies the sustainability and optimality of public debt under different scenarios: the closed economy, the small open economy, and a two-country setting. Sustainability refers to the existence and the stability of the long-run equilibrium. Optimality relates to the path of public debt that maximizes discounted utility. The analysis is conducted within the framework of the Solow model, the overlapping generations model and the infinite horizon model. The government can follow different strategies, it either fixes the deficit ratio or the tax rate. As a result, a fixed deficit ratio generally can be sustained. By contrast, a fixed tax rate generally cannot be sustained. Depending on the chosen fiscal strategy, there exists either an optimal deficit ratio or an optimal tax rate that maximizes the sum of consumption and government purchases per capita.

Author : Hana Polackova Brixi,Allen Schick
Publisher : World Bank Publications
Page : 390 pages
File Size : 51,9 Mb
Release : 2002
Category : Business & Economics
ISBN : 8210379456XXX

Get Book

Government at Risk by Hana Polackova Brixi,Allen Schick Pdf

Many governments have faced serious instability as a result of their contingent liabilities. But conventional public finance analysis and institutions fail to address such fiscal risks. This book aims to provide motivation and practical guidance to governments seeking to improve theirmanagement of fiscal risks. The book addresses some of the difficult analytical and institutional challenges that face reformers tooling up to manage government fiscal risks. It discusses the inadequacies of conventional practices as well as recent advances in dealing with fiscal risk.

Author : Nigel Andrew Chalk,Richard Hemming
Publisher : International Monetary Fund
Page : 34 pages
File Size : 43,8 Mb
Release : 2000-04
Category : Business & Economics
ISBN : UCSD:31822028586196

Get Book

Assessing Fiscal Sustainability in Theory and Practice by Nigel Andrew Chalk,Richard Hemming Pdf

The main purpose of this paper is to provide an overview of approaches to assessing fiscal sustainability. It summarizes the general analytical background, focusing on the present value budget constraint, which is the benchmark against which solvency is determined, tests of sustainability (including sustainability indicators), and sustainability and uncertainty. The paper then looks at the way in which fiscal sustainability has been assessed in different types of IMF work. Finally the link between fiscal and external sustainability is discussed.

Author : Ms.Sheila Bassett,Mrs.Claire Liuksila,Alejandro García
Publisher : International Monetary Fund
Page : 72 pages
File Size : 43,7 Mb
Release : 1994-11-01
Category : Business & Economics
ISBN : 9781451855852

Get Book

Fiscal Policy Sustainability in Oil-Producing Countries by Ms.Sheila Bassett,Mrs.Claire Liuksila,Alejandro García Pdf

Assessing the sustainability of a given fiscal policy is especially important for countries that depend on income from exhaustible resources. Political and growth pressures may push governments to raise expenditure when revenue from exhaustible resources rises, but cutting outlays when price swings reduce income is often difficult. Traditional fiscal accounting may give a misleading view of policy sustainability. This paper argues that for countries in which a significant proportion of government revenue is derived from the exploitation of an exhaustible natural resource, fiscal policy sustainability can best be assessed within a permanent income framework that takes into account total government wealth, including the imputed wealth from reserves of natural resources. Using this framework, the paper takes a sample of six countries where government revenue from petroleum extraction is significant and draws conclusions about the sustainability of their fiscal policies during 1980-92.

Author : Mr.Nigel Andrew Chalk
Publisher : International Monetary Fund
Page : 37 pages
File Size : 52,6 Mb
Release : 1998-03-01
Category : Business & Economics
ISBN : 9781451844351

Get Book

Fiscal Sustainability with Non-Renewable Resources by Mr.Nigel Andrew Chalk Pdf

This paper assesses sustainable fiscal behavior in an economy where wealth is derived predominantly from a non-renewable resource. It explores the issue in a simple dynamic framework that highlights the structural weaknesses in the underlying budgetary position, takes into account the rate of depletion of a country’s natural resource base, and examines the impact of changes in a country’s terms of trade. An alternative indicator of fiscal sustainability is derived, and the principal factors determining sustainability are identified. The results of the analysis are applied to Venezuela and Kuwait.

Author : International Monetary Fund
Publisher : International Monetary Fund
Page : 230 pages
File Size : 53,9 Mb
Release : 2011-12-08
Category : Business & Economics
ISBN : 9781616351564

Get Book

Public Sector Debt Statistics by International Monetary Fund Pdf

The global financial crisis of recent years and the associated large fiscal deficits and debt levels that have impacted many countries underscores the importance of reliable and timely government statistics and, more broadly, public sector debt as a critical element in countries fiscal and external sustainability. Public Sector Debt Statistics is the first international guide of its kind, and its primary objectives are to improve the quality and timeliness of key debt statistics and promote a convergence of recording practices to foster international comparability and as a reference for national compilers and users for compiling and disseminating these data. Like other statistical guides published by the IMF, this one was prepared in consultation with countries and international agencies, including the nine organizations of the Inter-Agency Task Force on Finance Statistics (TFFS). The guide's preparation was based on the broad range of experience of our institutions and benefitted from consultation with national compilers of government finance and public sector debt statistics. The guide's concepts are harmonized with those of the System of National Accounts (2008) and the Balance of Payments and International Investment Position Manual, Sixth Edition.

Author : D. Detter,S. Fölster
Publisher : Springer
Page : 230 pages
File Size : 40,8 Mb
Release : 2016-02-05
Category : Social Science
ISBN : 9781137519863

Get Book

The Public Wealth of Nations by D. Detter,S. Fölster Pdf

We have spent the last three decades engaged in a pointless and irrelevant debate about the relative merits of privatization or nationalization. We have been arguing about the wrong thing while sitting on a goldmine of assets. Don’t worry about who owns those assets, worry about whether they are managed effectively. Why does this matter? Because despite the Thatcher/ Reagan economic revolution, the largest pool of wealth in the world – a global total that is much larger than the world’s total pensions savings, and ten times the total of all the sovereign wealth funds on the planet – is still comprised of commercial assets that are held in public ownership. If professionally managed, they could generate an annual yield of 2.7 trillion dollars, more than current global spending on infrastructure: transport, power, water, and communications. Based on both economic research and hands-on experience from many countries, the authors argue that publicly owned commercial assets need to be taken out of the direct and distorting control of politicians and placed under professional management in a ‘National Wealth Fund’ or its local government equivalent. Such a move would trigger much-needed structural reforms in national economies, thus resurrect strained government finances, bolster ailing economic growth, and improve the fabric of democratic institutions. This radical, reforming book was named one of the "Books of the Year".by both the FT and The Economist.

Author : P. Arestis,M. Sawyer
Publisher : Springer
Page : 270 pages
File Size : 44,7 Mb
Release : 2014-04-30
Category : Business & Economics
ISBN : 9781137269539

Get Book

Fiscal and Debt Policies for the Future by P. Arestis,M. Sawyer Pdf

This book offers detailed analysis and informed comment on the future of emerging economic policies. It is essential reading for all postgraduates and scholars looking for expert discussion and debate on the issues surrounding economic policy.