Weder Martin

Based on probit estimates, this paper analyzes the effects of fiscal consolidation on the prob-ability of sovereign defaults in the short run. Using a panel of 104 developing countries from 1980 to 2009 and controlling for various economic,...
The current debt crisis in many OECD countries calls for adequate strategies in budget consolidation.To regain fiscal solvency many governments base their fiscal adjustments at least partly on spending cuts. A common political claim is that...