1945

In estimating the public sector's absorption of private debt, the following hypothesis was used: the amount of debt absorbed (A) by the public sector during the period t + 1 is equivalent to: At+i = dt + i - dt - fnt+i, where "d" represents the long- term public external debt and "fn" represents net flows, defined as the difference between net loans and amortization (the magnitudes of all these variables were taken from the World Bank, World Debt Tables, Washington, D.C., 1988).

Related Subject(s): Economic and Social Development
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