Date Added: Feb 2010
Public debt is one of the important economic variables that quantitatively describe a nation's economy. Because bankruptcy is a risk faced even by institutions as large as governments (e.g. Iceland), national debt should be strictly controlled with respect to national wealth. Also, the problem of eliminating extreme poverty in the world is closely connected to the study of extremely poor debtor nations. The authors analyze the time evolution of national public debt and find "Convergence": initially less-indebted countries increase their debt more quickly than initially more-indebted countries.