Working Paper: CEPR ID: DP539
Authors: Daniel Cohen
Abstract: This paper applies the methodology and the empirical results derived from the `endogenous growth literature' to the East European countries. From that baseline, we analyse the solvency of Eastern Europe by calculating a `growth-adjusted-debt-per-effective-capita' measure of the burden of debt in these countries. Finally, we calculate a benchmark for the secondary market price of their debts.
Keywords: growth; eastern europe; debt
JEL Codes: 111; 443
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| good growth prospects (P17) | mitigate risks associated with high debt levels (G32) |
| high debt-to-GDP ratio (H69) | high sovereign risk (F34) |
| favorable growth prospects (P17) | manage higher debt levels effectively (H63) |
| Hungary's debt burden (H63) | penalizes its economic position (F69) |
| Hungary's lack of debt rescheduling (F34) | exacerbates its position (F65) |
| debt management strategies (H63) | perceived economic risk (D81) |