Question
How do you model with the following variables to understand whether Spanish Government's Debt as a fraction of GDP sustainable? (i.e., does it explode, stay
How do you model with the following variables to understand whether Spanish Government's Debt as a fraction of GDP "sustainable"? (i.e., does it explode, stay constant, or converges to zero?) Explain your (reasonable) assumptions if you take any?
GDP (constant prices of 2010)
Real GDP Growth
GDP (current prices)
Nominal GDP growth
Gov. Revenue (current prices)
Gov. Revenue/GDP
Gov Expenditure before interest rate payments (current prices)
Gov Expenditure/GDP
Primary Surplus (current prices)
Primary Surplus/GDP
Interest Rate Payments (current prices)
Fiscal Surplus (current prices)
Fiscal Surplus/GDP
Gov. Debt (current prices)
Gov. Debt/GDP
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