Melecky, Martin (2009): The Effect of Institutions, Geography, Development Assistance and Debt Crises on Public-Debt Management.
Download (169kB) | Preview
Using survey data on debt management strategies, this paper studies whether the probability that a country has a debt management strategy, publishes its debt strategy, and uses a benchmark-based strategy is affected by democratic accountability, institutional quality, past debt crises/defaults, IFIs development assistance, and participation in debt management programs. We find that countries located in Latin America and Caribbean are less likely to have developed a debt management strategy and, if they have, they are less likely to publish it. In contrast, countries located in Middle East and North Africa are less likely to use quantitative benchmarks in formulation of their debt management strategy. A country is more likely to have developed a debt management strategy if it has an experience of a past debt crisis, but not of repeated debt crises. Institutional quality and democratic accountability could significantly contribute to emergence of more transparent and accountable debt management strategies in developing countries. IFIs' technical assistance on public debt management could be enhanced by IFIs conducting their own, prior diagnostic reviews.
|Item Type:||MPRA Paper|
|Original Title:||The Effect of Institutions, Geography, Development Assistance and Debt Crises on Public-Debt Management|
|Keywords:||Public Debt Management Strategy; Cross-Country Survey; Institutional Factors; Regional Location; Debt Crises; Development Assistance.|
|Subjects:||O - Economic Development, Technological Change, and Growth > O2 - Development Planning and Policy > O23 - Fiscal and Monetary Policy in Development
O - Economic Development, Technological Change, and Growth > O5 - Economywide Country Studies > O50 - General
H - Public Economics > H6 - National Budget, Deficit, and Debt > H63 - Debt; Debt Management; Sovereign Debt
H - Public Economics > H7 - State and Local Government; Intergovernmental Relations > H74 - State and Local Borrowing
|Depositing User:||Martin Melecky|
|Date Deposited:||22. Jul 2009 05:20|
|Last Modified:||20. Feb 2013 16:06|
Bohn, H. (1990a). Tax smoothing with financial instruments. American Economic Review 5, vol. 80, 1217-1230.
Bohn, H. (1990b). A positive theory of foreign currency debt. Journal of International Economics 29, 273-292.
Burnside, C. (2004). Assessing New Approaches to Fiscal Sustainability Analysis. Working Paper, Duke University. Durham.
Gill, I., Pinto, B. (2005). Public Debt in Developing Countries: Has the Market-Based Model Worked? World Bank Research Working Paper 3674 (August). Washington, D.C.
Laeven, L., Valencia, F. (2008). Systemic Banking Crises: A New Database. IMF Working Paper 08/224. Washington, D.C.
Missale, A. (1999). Public Debt Management. Oxford Press. University of Oxford.
Wheeler, G. (2004). Sound Practice in Government Debt Management. World Bank. Washington, D.C.
IMF & WB (2004). Guidelines for Public Debt Management: Accompanying Document and Selected Case Studies. The International Monetary Fund and the World Bank. Washington, D.C.
IMF & WB (2001). Guidelines for Public Debt Management. The International Monetary Fund and the World Bank. Washington, D.C.
Togo, E. (2007). Coordinating Public Debt Management with Fiscal and Monetary Policies: An Analytical Framework. manuscript, Banking and Debt Management Department, World Bank. Washington, D.C.
Sargent, T.J., Wallace, N. (1981). Some unpleasant monetarist arithmetic. Federal Reserve Bank of Minneapolis Quarterly Review 5, (Fall) 1-17.
Available Versions of this Item
- The Effect of Institutions, Geography, Development Assistance and Debt Crises on Public-Debt Management. (deposited 22. Jul 2009 05:20) [Currently Displayed]