IDEAS home Printed from https://ideas.repec.org/a/taf/macfem/v19y2026i1p77-96.html

The anatomy of public debt reversals: new empirical insights from developing countries

Author

Listed:
  • Rabia Rafique
  • Asad Nisar
  • Syed Sadaqat Ali Shah

Abstract

This study aims to investigate how different policy shocks help erode public debt ratios across a large sample of developing countries. Using Jordas (2005) local projection model, the study’s findings show a one percent shock to policy variables indeed erodes the public debt ratio; the effects, however, largely depend on appropriate timing and design of policy shock. In addition, expenditure-led policies tend to be more powerful as compared to revenue-based measures in eroding the public debt ratios. The study’s key policy suggestion is to prioritize gradual implementation of policy options in eroding the debt ratios over the medium-term.

Suggested Citation

  • Rabia Rafique & Asad Nisar & Syed Sadaqat Ali Shah, 2026. "The anatomy of public debt reversals: new empirical insights from developing countries," Macroeconomics and Finance in Emerging Market Economies, Taylor & Francis Journals, vol. 19(1), pages 77-96, January.
    • Handle: RePEc:taf:macfem:v:19:y:2026:i:1:p:77-96
    DOI: 10.1080/17520843.2024.2363025
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1080/17520843.2024.2363025
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1080/17520843.2024.2363025?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to

    for a different version of it.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:taf:macfem:v:19:y:2026:i:1:p:77-96. See general information about how to correct material in RePEc.

    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.

    We have no bibliographic references for this item. You can help adding them by using 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 RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Chris Longhurst (email available below). General contact details of provider: http://www.tandfonline.com/REME20 .

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

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.