Incomplete Integration and Contagion of Debt Distress in Economic Unions

This paper compares different fiscal integration schemes on the basis of their ability to finance public investments and resilience to debt distress and contagion. Complete integration schemes, where a central authority chooses the level of public...

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Bibliographic Details
Main Authors:	Karayalcin, Cem, Onder, Harun
Format:	Policy Research Working Paper
Language:	English en_US
Published:	World Bank, Washington, DC 2014
Subjects:	ADVANCED ECONOMIES AMORTIZATION AMOUNT OF LOAN ASSETS BENEFICIARIES BORROWER BUDGET CONSTRAINT BUDGET CONSTRAINTS BUSINESS CYCLE CAPITAL ACCUMULATION CENTRALIZATION CLOSED ECONOMY CONFLICT OF INTEREST CONNECTIVITY CONSUMPTION SMOOTHING CONTINGENT CLAIM CREDITORS DEBT DEBT CONTRACT DEBT CONTRACTS DEBT ISSUANCE DEBT LEVEL DEBT LEVELS DEBT OBLIGATIONS DEBT REPAYMENT DEBT STOCK DECISION MAKING DEFAULT RISK DEVELOPMENT POLICY ECONOMIC GROWTH ECONOMIC INTEGRATION ECONOMIC OUTLOOK ECONOMIC RESEARCH ELASTICITY EQUILIBRIUM EXPENDITURES EXTERNAL DEBT EXTERNALITIES EXTERNALITY FINANCIAL CRISIS FINANCIAL INSTITUTIONS FINANCIAL MARKETS FINANCIAL STABILITY FISCAL INTEGRATION FIXED SHARE FORECASTS FOREIGN CREDITORS FOREIGN DEBT FOREIGN FUNDS FOREIGN LENDERS FULL EMPLOYMENT FULL REPAYMENT FUNCTIONAL FORMS FUTURE RESEARCH GLOBAL ECONOMICS GLOBAL FINANCIAL MARKETS GROWTH RATES HOUSEHOLDS INCENTIVE CONSTRAINTS INCOME INCOME LEVELS INCOME TAX INCOMES INDEBTEDNESS INEQUALITY INFRASTRUCTURE INVESTMENT INFRASTRUCTURE INVESTMENTS INFRASTRUCTURE PROJECTS INITIAL DEBT INTEREST PAYMENT INTEREST RATE INTEREST RATES INTERNATIONAL BANK INTERNATIONAL BORROWING INTERNATIONAL CAPITAL INTERNATIONAL CAPITAL MARKET INTERNATIONAL CAPITAL MARKETS INTERNATIONAL DEBT INTERNATIONAL ECONOMICS INTERNATIONAL MARKETS INVESTING INVESTMENT BEHAVIOR INVESTMENT DECISION INVESTMENT DECISIONS INVESTMENT POLICIES INVESTMENT PURPOSES INVESTMENT STRATEGY JURISDICTION JURISDICTIONS LENDERS LEVEL OF CREDIT LEVEL OF DEBT LEVEL OF INDEBTEDNESS LEVELS OF DEBT LEVERAGE LOAN LOCAL GOVERNMENTS MACROECONOMICS MANDATE MARKET MECHANISMS MONETARY FUND MONETARY POLICY MORTGAGE NASH EQUILIBRIUM NATIONAL INVESTMENT NEGATIVE SHOCK NEGATIVE SHOCKS OPTIMAL INVESTMENT OPTIMIZATION ORIGINAL DEBT OUTPUT PARTIAL DEFAULT PAYOFFS POLITICAL ECONOMY PRIVATE CAPITAL PRODUCTION COSTS PRODUCTION FUNCTION PRODUCTIVITY PUBLIC DEBT PUBLIC FINANCE PUBLIC GOOD PUBLIC INVESTMENT PUBLIC INVESTMENTS RATE OF RETURN RECESSION RENEGOTIATIONS REPAYMENT RETURN RETURN ON INVESTMENTS RETURNS RETURNS TO SCALE SAVINGS SMALL ECONOMY SOVEREIGN DEBT SOVEREIGN DEFAULTS SOVEREIGN RISK STRUCTURAL PROBLEMS SUPPLY SHOCK SUPPLY SHOCKS TAX TAX REVENUES TOTAL DEBT TOTAL FACTOR PRODUCTIVITY TOTAL OUTPUT TRANSPORTATION INFRASTRUCTURE TREASURY UNION UNIONS UTILITY FUNCTIONS WEALTH WILLINGNESS TO PAY
Online Access:	http://documents.worldbank.org/curated/en/2014/12/20464338/incomplete-integration-contagion-debt-distress-economic-unions http://hdl.handle.net/10986/20700