An Approach to Measuring the Affordability of State Debt
Public Budgeting and Finance, Volume 23, Issue 4, pages 65-85.

Brecher, C., Richwerger, K. & Van Wagner, M.

Affordability is one important and widely accepted element of state and local debt policy. However, there is no well-established measure of affordability and no clear standard for making normative judgments about what amount of debt is affordable for a specific jurisdiction. This article suggests a six-step method for measuring affordability of state debt that provides a useful guideline for determining when a state may be entering a "danger zone" by having debt that exceeds norms of affordability.