Courtault, Jean-Michel; Magnani, Riccardo - In: Economics Bulletin 34 (2014) 3, pp. 1945-1960
In this paper we use the concept of distributable surplus, introduced by Allais (1943) and Luenberger (1992), to evaluate the capacity of European countries to repay their debts. We first show that the surplus generated between 2005 and 2009 was not sufficient to cover the 2009 deficit for...