This thesis examines the accuracy of debt theory for advanced vs. developing countries in anempirical context. Based on the primary occurrence of sovereign debt defaults in developing countries, the rationale had been promoted that debt theory behaves differently in developing countries and should therefore be considered separately. This thesis aims to provide evidence of whether sovereign debt models, in particular the Fall and Fournier (FF-) model, show significant differences between advanced and developing countries when simulating empirical data. The FF-model is used to simulate 33 advanced and 68 developing countries from 1995 to 2021. The results show a significant better simulation quality for advanced than for developing countries alongside a high overall fit for all countries but no absolute divide between the groups. These results support the statement that advanced countries provide a better debt research basis. Therefore, theories need to be extended to better cover developing countriesand simulation outliers. This conclusion is unfolded using a structured equation model (SEM) for a time series simulation to allow for the unique character of simultaneous equations and progress along the time horizon. Limitations and opportunities of this method are identified.