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Sovereigns' public capital and fiscal constraint influence sovereign debt crises and resolution. We compile a dataset on public expenditure composition around restructurings with private external creditors. We show that during restructurings, public investment (i) experiences severe decline and...
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increases in the debt stock of about 120% over the ten-year for the Sub-Sahara region. The results imply that fiscal governance …
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mixes of investment in human capital and infrastructure. We show that investment in human capital is much more effective … than investment in infrastructure in promoting long-run economic development when investments earn their average estimated … returns. The decision about how much to invest in human capital versus infrastructure involves, however, an acute …
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