The objective of this research was to demonstrate the (nonlinear) risks of sovereign insolvency and explore the applicability of stochastic modeling in public debt management, given a structural economic model of stochastic government debt dynamics. A stochastic optimal control model was...

Sound and efficient external debt sustainability is an essential instrument to shred the notoriety of indebtedness and to ameliorate economic growth. This study was conducted with an objective to examine the determinants of foreign debt sustainability in Ethiopia using a yearly time series data...