This paper studies the effect of fiscal rules on debt affordability in a large set of developed and emerging market economies, using a panel data model which allows the inclusion of weakly exogenous regressors, and which deals appropriately with cross-sectional dependence. The results show a...

This paper studies the effect of fiscal rules on debt affordability in a large set of developed and emerging market economies, using a panel data model which allows the inclusion of weakly exogenous regressors, and which deals appropriately with cross-sectional dependence. The results show a...

This paper studies the effect of implementing fiscal rules on sovereign default risk and on the probability of large capital ow reversals for a large sample of countries including both developed and emerging market economies. Results indicate that fiscal rules are beneficial for macroeconomic...

This paper studies the effect of implementing fiscal rules on sovereign default risk and on the probability of large capital ow reversals for a large sample of countries including both developed and emerging market economies. Results indicate that fiscal rules are beneficial for macroeconomic...

After one fits regression models, it is quite common to produce out-of-sample forecasts to evaluate the predictive accuracy of the model or simply to estimate the expected behavior of one or more dependent variables (assuming that the model is valid be yond the estimation sample). I selected a...

In this presentation, I discuss two applications of the vec commands. First, I use the cointegrating VAR approach discussed in Garratt et al. (2006) to fit a vector error-correction model. In contrast with the application of the traditional Johansen statistical restrictions for the...