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The economic consequences of rising US government debt: privileges at risk

Bohn, Henning - 2010

maturity of U.S. public debt - over $2.5 trillion maturing in 2010 - investor expectations are critical. Excessive debts …

Persistent link: https://www.econbiz.de/10003974641

Conservation by lending

Harstad, Bård; Storesletten, Kjetil - 2023

This project analyzes how a principal can motivate an agent to conserve rather than exploit a depletable resource. This dynamic problem is relevant for tropical deforestation as well as for other environmental problems. It is shown that the smaller is the agent's discount factor (e.g., because...

Persistent link: https://www.econbiz.de/10014307153

Debt maturity without commitment

Niepelt, Dirk - 2008

I analyze how lack of commitment affects the maturity structure of sovereign debt. Governments balance benefits of …-term debt affects default and rollover decisions by subsequent policy makers. The equilibrium maturity structure is shaped by … maturity structure with positive gross positions and a shortening of the maturity structure when debt issuance is high, output …

Persistent link: https://www.econbiz.de/10003803574

Manufacturing risk-free government debt

Jiang, Zhengyang; Lustig, Hanno; Nieuwerburgh, Stijn van; … - 2021

Governments face a trade-off between insuring bondholders and taxpayers. If the government fully insures bondholders by manufacturing risk-free zero-beta debt, then it cannot also insure taxpayers against permanent macroeconomic shocks over long horizons. Instead, taxpayers will pay more in...

Persistent link: https://www.econbiz.de/10012437854

FTPL and the maturity structure of government debt in the New-Keynesian model

Liemen, Max Ole; Posch, Olaf - 2022

inflation dynamics. Our results illustrate the role of the maturity of existing debt in the wake of skyrocketing debt … which cases the average maturity of government debt matters for the transmission of policy shocks. The central task of this … paper is to shed light on the theoretical predictions of the maturity structure on macro dynamics with an emphasis on model …

Persistent link: https://www.econbiz.de/10013285610

Short and long-run behaviour of long-term sovereign bond yields

Afonso, António - 2010

factors (inflation, budgetary and current account imbalances, real effective exchange rates, and liquidity). -- long …

Persistent link: https://www.econbiz.de/10008732265

Explaining fluctuations in the thrift savings fund daily balance at U.S. treasury

Skidmore, Mark; Alvayay Torrejón, Camila; Pare, David - 2021

In this paper we document and examine unusual fluctuations in the G-Fund, which is one of five funds available in a voluntary federal government employee retirement savings vehicle called the Thrift Savings Plan. The G-Fund is managed as "internally" held debt by the United States Department of...

Persistent link: https://www.econbiz.de/10012514922

Public debt sustainability and defaults

Guillard, Michel; Kempf, Hubert - 2017

We offer a new methodology for the assessment of public debt sustainability in a stochastic economy when sovereign default taken into account. The default threshold differs from the no-Ponzi condition and depends on the post-default debt recovery rule. We distinguish sustainability and...

Persistent link: https://www.econbiz.de/10011672036

Hypnosis before wake-up call?! : the revival of sovereign credit risk perception in the EMU-crisis

Bordon, Ingo G.; Schmid, Kai D.; Schmidt, Michael - 2014 - This Version: July 2014

This paper qualifies the view of pronounced overpricing of sovereign bonds for the so-called GIIPS countries during the financial crisis. We use annual data for 21 OECD countries from 1980 to 2012. As opposed to related studies, our data set allows us to contrast the pricing of macroeconomic...

Persistent link: https://www.econbiz.de/10010393624

Debt stabilization and debt mutualization in a monetary union with endogenous risk premia

Engwerda, Jacob Christiaan; Aarle, Bas van; Weeren, … - 2015

In this paper we analyse debt stabilization in a monetary union that features endogenous risk premia. In particular, we analyse debt stabilization in two diametrically opposed regimes. In the first regime, the "national fiscal discipline regime", financial markets impose sovereign risk premia...

Persistent link: https://www.econbiz.de/10011350136