The Commitment Benefit of Consols in Government Debt Management

IF 8.1 1区 经济学 Q1 ECONOMICS American Economic Review-Insights Pub Date : 2022-06-01 DOI:10.1257/aeri.20210341
Davide Debortoli, Ricardo Nunes, P. Yared
{"title":"The Commitment Benefit of Consols in Government Debt Management","authors":"Davide Debortoli, Ricardo Nunes, P. Yared","doi":"10.1257/aeri.20210341","DOIUrl":null,"url":null,"abstract":"We consider optimal government debt maturity in a deterministic economy in which the government can issue any arbitrary debt maturity structure and in which bond prices are a function of the government’s current and future primary surpluses. The government sequentially chooses policy, taking into account how current choices—which impact future policy—feed back into current bond prices. We show that issuing consols constitutes the unique stationary optimal debt portfolio, as it boosts government credibility to future policy and reduces the debt financing costs. (JEL E62, G12, H61, H63)","PeriodicalId":29954,"journal":{"name":"American Economic Review-Insights","volume":" ","pages":""},"PeriodicalIF":8.1000,"publicationDate":"2022-06-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":"1","resultStr":null,"platform":"Semanticscholar","paperid":null,"PeriodicalName":"American Economic Review-Insights","FirstCategoryId":"96","ListUrlMain":"https://doi.org/10.1257/aeri.20210341","RegionNum":1,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":null,"EPubDate":"","PubModel":"","JCR":"Q1","JCRName":"ECONOMICS","Score":null,"Total":0}
引用次数: 1

Abstract

We consider optimal government debt maturity in a deterministic economy in which the government can issue any arbitrary debt maturity structure and in which bond prices are a function of the government’s current and future primary surpluses. The government sequentially chooses policy, taking into account how current choices—which impact future policy—feed back into current bond prices. We show that issuing consols constitutes the unique stationary optimal debt portfolio, as it boosts government credibility to future policy and reduces the debt financing costs. (JEL E62, G12, H61, H63)
查看原文
分享 分享
微信好友 朋友圈 QQ好友 复制链接
本刊更多论文
国有企业在政府债务管理中的承诺效益
我们在确定性经济中考虑最优政府债务到期日,其中政府可以发行任意债务期限结构,债券价格是政府当前和未来基本盈余的函数。政府依次选择政策,考虑当前的选择如何反馈到当前的债券价格,这些选择会影响未来的政策。我们证明发行国库债券构成了唯一的固定最优债务组合,因为它提高了政府对未来政策的可信度并降低了债务融资成本。(jel e62, g12, h61, h63)
本文章由计算机程序翻译,如有差异,请以英文原文为准。
求助全文
约1分钟内获得全文 去求助
来源期刊
自引率
0.00%
发文量
27
期刊介绍: The journal American Economic Review: Insights (AER: Insights) is a publication that caters to a wide audience interested in economics. It shares the same standards of quality and significance as the American Economic Review (AER) but focuses specifically on papers that offer important insights communicated concisely. AER: Insights releases four issues annually, covering a diverse range of topics in economics.
期刊最新文献
Finance, Managerial Inputs, and Misallocation The Educational Consequences of Remote and Hybrid Instruction during the Pandemic Reducing Frictions in Health Care Access: The ActionHealthNYC Experiment for Undocumented Immigrants Decision Theory and Stochastic Growth Isolating Personal Knowledge Spillovers: Coinventor Deaths and Spatial Citation Differentials
×
引用
GB/T 7714-2015
复制
MLA
复制
APA
复制
导出至
BibTeX EndNote RefMan NoteFirst NoteExpress
×
×
提示
您的信息不完整,为了账户安全,请先补充。
现在去补充
×
提示
您因"违规操作"
具体请查看互助需知
我知道了
×
提示
现在去查看 取消
×
提示
确定
0
微信
客服QQ
Book学术公众号 扫码关注我们
反馈
×
意见反馈
请填写您的意见或建议
请填写您的手机或邮箱
已复制链接
已复制链接
快去分享给好友吧!
我知道了
×
扫码分享
扫码分享
Book学术官方微信
Book学术文献互助
Book学术文献互助群
群 号:481959085
Book学术
文献互助 智能选刊 最新文献 互助须知 联系我们:info@booksci.cn
Book学术提供免费学术资源搜索服务,方便国内外学者检索中英文文献。致力于提供最便捷和优质的服务体验。
Copyright © 2023 Book学术 All rights reserved.
ghs 京公网安备 11010802042870号 京ICP备2023020795号-1