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Assessing Debt Sustainability in Brazil

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  • de Carvalho, Alexandre
  • Salomão, Pedro A. S.

Abstract

We study Ramsey model for an open economy applied to the case of Brazil. We find optimal tra jectories of consumption, investment, capital stock and net foreign liabilities and, with this, analyze debt sustainability in Brazil. A new approach to capturing optimal tra jectories is presented. The main tools are the Stable Manifold Theorem and the Lambda Lemma, normally used in the field of dynamical systems.

Suggested Citation

  • de Carvalho, Alexandre & Salomão, Pedro A. S., 2007. "Assessing Debt Sustainability in Brazil," Brazilian Review of Econometrics, Sociedade Brasileira de Econometria - SBE, vol. 27(1), May.
    • Handle: RePEc:sbe:breart:v:27:y:2007:i:1:a:1571
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    References listed on IDEAS

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    1. Robert E. Hall, 2001. "The Stock Market and Capital Accumulation," American Economic Review, American Economic Association, vol. 91(5), pages 1185-1202, December.
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    5. Olivier Jean Blanchard, 1983. "Debt and the Current Account Deficit in Brazil," NBER Chapters, in: Financial Policies and the World Capital Market: The Problem of Latin American Countries, pages 187-198, National Bureau of Economic Research, Inc.
    6. Lawrence H. Summers, 1981. "Taxation and Corporate Investment: A q-Theory Approach," Brookings Papers on Economic Activity, Economic Studies Program, The Brookings Institution, vol. 12(1), pages 67-140.
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    Cited by:

    1. Enrique R. Casares & María Guadalupe García-Salazar & Leobardo Pedro Plata Pérez & José Manuel Ramos Varela, 2023. "Deuda externa y crecimiento económico. Una calibración para México," Remef - Revista Mexicana de Economía y Finanzas Nueva Época REMEF (The Mexican Journal of Economics and Finance), Instituto Mexicano de Ejecutivos de Finanzas, IMEF, vol. 18(3), pages 1-24, Julio - S.
    2. Khaiwal Ravindra & Ashutosh Sarwa & Nidhi Bhatnagar & Ramandeep Kaur & Suman Mor, 2020. "Public perception about community reverse osmosis-treated water, its acceptability, and barriers in choice of safe drinking water," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 22(6), pages 5819-5831, August.
    3. Mo´nica Hirst, 2008. "Brazil–India Relations," South Asian Survey, , vol. 15(1), pages 143-164, January.

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