@article{Sustainability:1652,
      recid = {1652},
      author = {Bi, Huixin and Leeper, Eric M.},
      title = {Analyzing Fiscal Sustainability},
      address = {2013},
      pages = {1 online resource (iii, 38 pages)},
      abstract = {The authors study the implications of fiscal policy  behaviour for sovereign risk in a framework that determines  a country’s fiscal limit, the point at which, for economic  or political reasons, taxes and spending can no longer  adjust to stabilize debt. A real business cycle model maps  the economic environment - expected fiscal policy, the  distribution of exogenous disturbances and private agents’  behaviour - into a distribution for the maximum sustainable  debt-to-GDP ratio. Default is possible at any point on this  fiscal limit distribution. Calibrations of the model to  Greek and Swedish data illustrate how the framework can be  used to study actual fiscal reforms undertaken by developed  economies facing sovereign risk pressures.},
      url = {http://www.oar-rao.bank-banque-canada.ca/record/1652},
      doi = {https://doi.org/10.34989/swp-2013-27},
}