TY - JOUR
T1 - The Sustainability of European External Debt
T2 - What have We Learned?
AU - Cuestas, Juan Carlos
AU - Gil-Alana, Luis A.
AU - Regis, Paulo José
N1 - Publisher Copyright:
© 2015 John Wiley & Sons Ltd.
PY - 2015/8/1
Y1 - 2015/8/1
N2 - In this paper we aim to analyze the level of sustainability of external debt and, more importantly, how it has changed for a number of European economies. Given the severity of the crisis since 2008, we argue that the path of external debt burdens may have changed since the start of the crisis, given the concerns about debt accumulation in most countries. We analyze the reaction of present debt accumulation to past debt stock, incorporating the possibility of endogenously determined structural breaks in this reaction function. We find that structural breaks happen in most cases after 2008, highlighting the importance of the policy measures taken by most governments.
AB - In this paper we aim to analyze the level of sustainability of external debt and, more importantly, how it has changed for a number of European economies. Given the severity of the crisis since 2008, we argue that the path of external debt burdens may have changed since the start of the crisis, given the concerns about debt accumulation in most countries. We analyze the reaction of present debt accumulation to past debt stock, incorporating the possibility of endogenously determined structural breaks in this reaction function. We find that structural breaks happen in most cases after 2008, highlighting the importance of the policy measures taken by most governments.
UR - http://www.scopus.com/inward/record.url?scp=84937125111&partnerID=8YFLogxK
U2 - 10.1111/roie.12175
DO - 10.1111/roie.12175
M3 - Article
AN - SCOPUS:84937125111
SN - 0965-7576
VL - 23
SP - 445
EP - 468
JO - Review of International Economics
JF - Review of International Economics
IS - 3
ER -