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
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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)
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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)
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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.
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