RT Journal Article
T1 Public Debt Frontier: a Python Toolkit for Analyzing Public Debt Sustainability
A1 Fernández-de-Córdoba-Martos, Gonzalo
A1 Molinari, Benedetto
A1 Torres-Chacón, José Luis
K1 Python (Lenguaje de programación)
K1 Deuda pública
AB This study proposes a synthetic visual indicator with which to perform debt sustainability analysis using dynamic general equilibrium models. In a single diagram, we summarized the general equilibrium relationships among economic activity, government budget, and the maximum amount of sustainable public debt. Then, we measured sustainability using the distance of actual debt from the model-consistent maximum debt. This indicator can be implemented with any DSGE model; as a backing theory, we used a neoclassical model augmented with endogenous tax revenues, disaggregated public spending, different production technologies for public and private goods, non-atomistic wage setters in public labor (unions), and a fully specified maturity curve for public bonds. We provided an example of its usage using the case of Greece during the last public debt crisis. To perform the numerical analysis, we developed original software, whose advantage is allowing an audience without expertise in DSGE models to perform general equilibrium debt sustainability analyses without requiring an understanding of the technicalities of DSGE models.
PB MDPI
YR 2021
FD 2021-11
LK https://hdl.handle.net/10630/44694
UL https://hdl.handle.net/10630/44694
LA eng
NO de-Córdoba, G.F.; Molinari, B.; Torres, J.L. Public Debt Frontier: A Python Toolkit for Analyzing Public Debt Sustainability. Sustainability 2021, 13, 13260.
NO Consejería de Transformación Económica, Industria, Conocimiento y Universidades, Junta de Andalucía
NO Fondos FEDER, Junta de Andalucía
NO FECYT -- INVESTIGACION SOBRE CAPITAL HUMANO Y DESIGUALDAD, Y SOBRE SOBRE...
NO FECYT -- CUESTIONES SOBRE ACUERDOS COMERCIALES Y CAPITAL HUMANO, INNOVAC...
DS RIUMA. Repositorio Institucional de la Universidad de Málaga
RD 3 mar 2026