Suchergebnisse

Contingent liabilities have gained prominence in the analysis of public finance. Indeed, history is full of episodes in which the financial position of the public sector is substantially altered-or its true nature uncovered-as a result of government bailouts of financial or nonfinancial entities, in both the private and the public sector. The paper discusses theoretical and practical issues raised by contingent liabilities, including the rationale for taking them on, how to safeguard against the fiscal risks associated with them, how to account and budget for them, and how to disclose them. Co

Consideration of obligations arising out of damage caused to identities or the property of individuals, theme analysis.

One of the more critical environmental risk areas involves the financing of cleanup costs associated with past improper disposal of hazardous wastes. These costs will run into the tens of billions of dollars. The federal Superfund program and related state programs are the driving forces for cleaning up hazardous waste. Under Superfund, the government collects taxes and coordinates cleanup strategies, and searches for potentially responsible parties (generators, disposers, transporters) to assist in financing the cleanup. To lessen the financial impact, responsible parties are looking to their liability insurers to provide coverage under old general liability insurance policies. Insurance companies contend that Superfund liabilities are not covered under liability policies. The paper examines the various financing methods and liabilities produced by Superfund. Particular emphasis is placed on developments in the courts which are resulting in a significant shift in the financial responsibilities to the insurance industry. Broad estimates of the financial impact of Superfund liabilities are developed. Finally, several public policy issues, which are raised by the topics exmained in this paper, are discussed.

"We examine the determinants of external crises, focusing on the role of foreign liabilities and their composition. Using a variety of statistical tools and comprehensive data spanning 1970-2011, we find that the ratio of net foreign liabilities (NFL) to GDP is a significant crisis predictor, and the more so when it exceeds 50 percent in absolute terms and 20 percent of the country-specific historical mean. This is primarily due to net external debt -- the effect of net equity liabilities is weaker and net FDI liabilities seem if anything an offset factor. We also find that: i) breaking down net external debt into its gross asset and liability counterparts does not add significant explanatory power to crisis prediction; ii) the current account is a powerful predictor, either measured unconditionally or as deviations from conventionally estimated "norms"; iii) foreign exchange reserves reduce the likelihood of crisis more than other foreign asset holdings; iv) a parsimonious probit containing those and a handful of other variables has good predictive performance in- and out-of-sample. The latter result stems largely from our focus on external crises stricto sensu"--Abstract