Series: IMF Working Papers
Author(s): Huixin Bi , Wenyi Shen , and Susan Yang
Publisher: INTERNATIONAL MONETARY FUND
Publication Date: 31 March 2014
Keywords: fiscal limits, sovereign default risk, state-dependent fiscal multiplier, government spending, tax rates, External Debt, and Fiscal Policy in Developing Countries, General,
This paper studies fiscal policy effects in developing countries with external debt and sovereign default risks. State-dependent distributions of fiscal limits are simulated based on macroeconomic uncertainty and f...