This paper examines the role of disaster shock in a one-sector, representative agent dynamic stochastic general equilibrium model (DSGE). First, it estimates a panel vector autoregresive (VAR) model for output, investment, trade balance, consumption, and country spread to capture the economic...

This study uses simulations of state-dependent distributions of fiscal limits for 18 economies in Central America and the Caribbean to better understand governments' ability to service their debt, arising from endogenously determined dynamic Laffer curves. Using a small, open economy model to...

This paper examines the role of disaster shock in a one-sector, representative agent Dynamic Stochastic General Equilibrium (DSGE) model. Firstly, we estimate a Panel Vector Autoregresive (VAR) model for output, investment, trade balance, consumption and country spread to capture the economic...