economies as debt rises above 50 percent of GDP. Moreover, the relationship vanishes in high-debt countries when the countries …

, average public debt-GDP ratios decline as the variability of revenues increases, primary balances and current expenditures … variability of public expenditures exceeds that of private expenditures by a wide margin. This paper proposes a model of a small … and revenue variability similar to the one observed in the data. The model mimics Mexico's GDP correlations of government …