Advanced Search
MyIDEAS: Login

Analyzing the Theoretical and Empirical Foundations of Public Debt Dynamics in Zimbabwe

Contents:

Author Info

  • Nebson Mupunga and Pierre Le Roux
Registered author(s):

    Abstract

    This paper provides an analysis of the theoretical and empirical foundations of public debt dynamics in Zimbabwe. The analysis was undertaken by applying the debt dynamics equation that enables estimating the required primary balance, building on the government inter-temporal budget constraint to infer the factors that influence public debt, as well as to ascertain specific policy issues required to ensure a sustainable public debt structure. The results from the simulation analysis show that debt dynamics in Zimbabwe are largely composed of huge stock flow adjustments to finance social and political related expenditures. This underscores the need for prudent debt management to guard against unexpected changes in public debt, which are not explained by fundamentals. The major policy implication from the study is the need to minimize the interest rate growth differential and to implement growth enhancing fiscal policies to ensure a sustainable long term public debt position.

    Download Info

    If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
    File URL: http://www.econrsa.org/node/832
    Download Restriction: no

    Bibliographic Info

    Paper provided by Economic Research Southern Africa in its series Working Papers with number 409.

    as in new window
    Length: 20 pages
    Date of creation: 2014
    Date of revision:
    Handle: RePEc:rza:wpaper:409

    Contact details of provider:
    Postal: Newlands on Main, F0301 3rd Floor Mariendahl House, cnr Campground and Main Rds, Claremont, 7700 Cape Town
    Phone: 021 671-3980
    Fax: +27 21 671 3912
    Web page: http://www.econrsa.org/
    More information through EDIRC

    Related research

    Keywords: Automatic Debt Dynamics; Public Debt Dynamics; Snowballing Effect; Debt Stabilising Primary Balance;

    This paper has been announced in the following NEP Reports:

    References

    No references listed on IDEAS
    You can help add them by filling out this form.

    Citations

    Lists

    This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

    Statistics

    Access and download statistics

    Corrections

    When requesting a correction, please mention this item's handle: RePEc:rza:wpaper:409. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Yoemna Mosaval).

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If references are entirely missing, you can add them using this form.

    If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.