Chortareas, Georgios Kapetanios, George Uctum, Merih
Year of Publication:
Working Paper, Department of Economics, Queen Mary, University of London 485
Using a new methodology that allows for nonlinearities, we find frequent support for sustainability in the debt of a set of Latin American countries. Our findings overturn results obtained with traditional unit-root tests and provide a more realistic alternative to evaluate the external solvency of an economy.