- A Interpolation and extrapolation of net external debt Since Lane and Milesi-Ferretti (2007) provide data on the net foreign liabilities only on an annual basis from 1970 to 2007, we employ the Chow and Lin (1971) procedure to compute a quarterly series ranging from 1971:1 to 2011:2. We suppose that there exists a relationship between a 4n à 1 vector of quarterly net external debt, B, and a 4nÃ3 matrix, X, including a constant, a time trend and the quarterly cumulative current account balance of the form B = XÎ + u, (21) where u is a random vector with mean zero and covariance matrix V which takes account of random revaluations of debt.
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- For all countries considered, Figure 6 plots the annual net external debt series as well as the interpolated and extrapolated quarterly net external debt series from 1975:1 to 2011:2. !! The cumulative current account balance uses the net external debt of 1975 as the initial value. 1980 1990 2000 2010 â1500000â500000 DE 1980 1990 2000 2010 â3e+050e+00 FR 1980 1990 2000 2010 FN 1980 1990 2000 2010 â1e+050e+00 BG 1980 1990 2000 2010 â5000050000150000 NL 1980 1990 2000 2010 AT 1980 1990 2000 2010 0e+003e+056e+05 IT 1980 1990 2000 2010 ES 1980 1990 2000 2010 PT 1980 1990 2000 2010 0e+003e+056e+05 GR 1980 1990 2000 2010 0e+004e+058e+05 UK 1980 1990 2000 2010 0e+006e+04 SD 1980 1990 2000 2010 â4e+05â1e+05 NO 1980 1990 2000 2010 â40000040000 DK
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