Cover IMF Working Papers
Buy Book in Print
How Costly Are Debt Crises?
Author:
Davide Furceri null

Search for other papers by Davide Furceri in
Current site
Google Scholar Close
and
Ms. Aleksandra Zdzienicka
Search for other papers by Ms. Aleksandra Zdzienicka in
Current site
Google Scholar Close
Series:
IMF Working Papers
Volume/Issue:
Volume 2011: Issue 280
Language:
English
Publication Date:
01 Dec 2011
DOI:
https://doi.org/10.5089/9781463926618.001
ISBN:
9781463926618
ISSN:
1018-5941
Pages:
30
Keywords:
WP; debt crisis; crisis episode; debt; output losses; debt crises; sovereign defaults; output growth; bond debt default; banking sector crisis; crisis output; debt crisis output; debt-currency-banking crisis; occurrence of a debt crisis; currency crises episode; debt crises t; identification of debt crisis episode; debt t; onset of a debt crisis; Debt default; Currency crises; Production growth; Global; Africa
Legal-disclaimer:
IMF Working Papers describe research in progress by the author(s) and are published to elicit comments and to encourage debate. The views expressed in IMF Working Papers are those of the author(s) and do not necessarily represent the views of the IMF, its Executive Board, or IMF management.
Download PDF (3.4 MB) Download Epub
The aim of this paper is to assess the short- and medium-term impact of debt crises on GDP. Using an unbalanced panel of 154 countries from 1970 to 2008, the paper shows that debt crises produce significant and long-lasting output losses, reducing output by about 10 percent after eight years. The results also suggest that debt crises tend to be more detrimental than banking and currency crises. The significance of the results is robust to different specifications, identification and endogeneity checks, and datasets.
  • Collapse
  • Expand
Cover IMF Working Papers
IMF Working Papers
ISSN:
1018-5941
Publisher:
International Monetary Fund