Callegaro, Giorgia; Ceci, Claudia; Ferrari, Giorgio - 2019
We consider a government that aims at reducing the debt-to-gross domestic product (GDP) ratio of a country. The … government observes the level of the debt-to-GDP ratio and an indicator of the state of the economy, but does not directly … total expected costs of holding debt and of debt's reduction policies. We model this problem as a singular stochastic …
