Macroeconomic ModelALG-MACRO-002 · v0.1Specification

Fiscal Space Indicator

A comparable measure of fiscal room in small island states.

Model card

Purpose
Show how much room governments have to respond to shocks, and how quickly it can narrow.
Inputs
  • Public debt and its composition
  • Interest burden
  • Primary balance
  • Growth and financing conditions
Method
Gap between current and debt-stabilizing primary balance, adjusted for financing conditions and shock exposure.
Outputs
  • Fiscal space reading by country
  • Sensitivity to growth and interest-rate shocks
Validation
Methodology under review; comparisons with established measures planned.
Limitations
  • Depends on the timeliness of public-finance data.
  • Shock adjustments are simplified in this version.

Version history

  • v0.1October 2026Specification.

Related work