Debt sustainability, public investment, and natural resources in Developing countries : the DIGNAR model /

Debt sustainability, public investment, and natural resources in Developing countries : the DIGNAR model /

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Bibliographic Details
Author / Creator:	Melina, Giovanni, author.
Imprint:	[Washington, District of Columbia] : International Monetary Fund, 2014. ©2014
Description:	1 online resource (42 pages) : illustrations (some color)
Language:	English
Series:	IMF Working Paper ; WP/14/50 IMF working paper ; WP/14/50.
Subject:	Debts, Public -- Developing countries -- Econometric models. Economic development -- Developing countries -- Econometric models. Public investments -- Developing countries -- Econometric models. Debts, Public -- Econometric models. Economic development -- Econometric models. Public investments -- Econometric models. Developing countries. Electronic books.
Format:	E-Resource Book
URL for this record:	http://pi.lib.uchicago.edu/1001/cat/bib/12502884

Hidden Bibliographic Details
Other authors / contributors:	Yang, Shu-Chun Susan, 1971- author. Zanna, Luis-Felipe, author. International Monetary Fund, issuing body.
ISBN:	9781484347942 1484347943 9781475515459
Notes:	Includes bibliographical references. Online resource; title from PDF title page (ebrary, viewed May 1, 2014).
Summary:	This paper presents the DIGNAR (Debt, Investment, Growth, and Natural Resources) model, which can be used to analyze the debt sustainability and macroeconomic effects of public investment plans in resource-abundant developing countries. DIGNAR is a dynamic, stochastic model of a small open economy. It has two types of households, including poor households with no access to financial markets, and features traded and nontraded sectors as well as a natural resource sector. Public capital enters production technologies, while public investment is subject to inefficiencies and absorptive capacity c.
Other form:	Print version: Melina, Giovanni. Debt sustainability, public investment, and natural resources in Developing countries: the DIGNAR model. [Washington, District of Columbia] : International Monetary Fund, ©2014 approximately 42 pages IMF working paper ; WP/14/50 9781475515459

Description
Summary:	This paper presents the DIGNAR (Debt, Investment, Growth, and Natural Resources) model, which can be used to analyze the debt sustainability and macroeconomic effects of public investment plans in resource-abundant developing countries. DIGNAR is a dynamic, stochastic model of a small open economy. It has two types of households, including poor households with no access to financial markets, and features traded and nontraded sectors as well as a natural resource sector. Public capital enters production technologies, while public investment is subject to inefficiencies and absorptive capacity constraints. The government has access to different types of debt (concessional, domestic and external commercial) and a resource fund, which can be used to finance public investment plans. The resource fund can also serve as a buffer to absorb fiscal balances for given projections of resource revenues and public investment plans. When the fund is drawn down to its minimal value, a combination of external and domestic borrowing can be used to cover the fiscal gap in the short to medium run. Fiscal adjustments through tax rates and government non-capital expenditures--which may be constrained by ceilings and floors, respectively--are then triggered to maintain debt sustainability. The paper illustrates how the model can be particularly useful to assess debt sustainability in countries that borrow against future resource revenues to scale up public investment.
Physical Description:	1 online resource (42 pages) : illustrations (some color)
Bibliography:	Includes bibliographical references.
ISBN:	9781484347942 1484347943 9781475515459