Jan in 't Veld; Pagano, Andrea; Ratto, Marco; Roeger, Werner - Directorate-General Economic and Financial Affairs, … - 2012
This paper proposes a framework for sovereign debt sustainability assessment based on an estimated DSGE model. One … and tax bases, and thus capture the impact of changes in the composition of GDP which is pronounced during fiscal … consolidation. Unsustainable debt developments may give rise to increasing interest rate spreads which could further reduce growth …