Sovereign Defaults during the Great Depression: New Data
... Manuals and the Yearbooks of the German Statical Office (Statistiches Reichsamt). Although there have been considerable efforts to produce historical series on sovereign borrowing and debt, these have major shortcomings for the pre-World War II era.1 Recent long term data-sets constructed by Reinhar ...
... Manuals and the Yearbooks of the German Statical Office (Statistiches Reichsamt). Although there have been considerable efforts to produce historical series on sovereign borrowing and debt, these have major shortcomings for the pre-World War II era.1 Recent long term data-sets constructed by Reinhar ...
Fiscal Vulnerabilities and Risks from Local Government
... Rationale. Infrastructure investment has become local governments' main strategy to foster growth and a preferred countercyclical tool, especially during the global crisis. However, local infrastructure spending has mainly been financed off-budget, either through land sales or Local Government Finan ...
... Rationale. Infrastructure investment has become local governments' main strategy to foster growth and a preferred countercyclical tool, especially during the global crisis. However, local infrastructure spending has mainly been financed off-budget, either through land sales or Local Government Finan ...
annual debt financing strategy
... One of the growth factors will be the government spending as stipulated on Law Number 27 Year 2014 on State Budget for 2015. The Budget sets revenue targets and allocation of expenditures, as well as financing targets. The Financing for 2015 Budget is dominated with debt which comes mainly from dome ...
... One of the growth factors will be the government spending as stipulated on Law Number 27 Year 2014 on State Budget for 2015. The Budget sets revenue targets and allocation of expenditures, as well as financing targets. The Financing for 2015 Budget is dominated with debt which comes mainly from dome ...
Information Asymmetry within Financial Markets and Corporate
... between managers and investors. These authors examine the relationship between information asymmetry measures and the firms' internal characterizing features such as intangible assets, asset pertaining research and development and operating expenses. They have discovered that information asymmetry i ...
... between managers and investors. These authors examine the relationship between information asymmetry measures and the firms' internal characterizing features such as intangible assets, asset pertaining research and development and operating expenses. They have discovered that information asymmetry i ...
No.253 / June 2008 Exposure in External Balance Sheets
... determinant of aggregate foreign currency exposure. In addition, the decomposition shows that the structure of foreign liabilities (across portfolio equity, direct investment, localcurrency debt and foreign-currency debt) is a key determinant of foreign currency exposure, with the equity share in l ...
... determinant of aggregate foreign currency exposure. In addition, the decomposition shows that the structure of foreign liabilities (across portfolio equity, direct investment, localcurrency debt and foreign-currency debt) is a key determinant of foreign currency exposure, with the equity share in l ...
capital structure and dividend policy
... many times a firm can cover the interest payments associated with its debt financing. Generally, a firm with a higher TIE ratio is said to have greater financial liquidity and lower threat of bankruptcy than a firm with a lower TIE ratio. Capital Structure Theory—academicians have proposed many theo ...
... many times a firm can cover the interest payments associated with its debt financing. Generally, a firm with a higher TIE ratio is said to have greater financial liquidity and lower threat of bankruptcy than a firm with a lower TIE ratio. Capital Structure Theory—academicians have proposed many theo ...
Government Debt - Board of Governors of the Federal Reserve System
... 4. Generational Accounting One prominent alternative to standard debt and deficit accounting is "generational accounting," proposed by Auerbach, Gokhale, and Kotlikoff (1991) and Kotlikoff (1992). These authors argue that the conventional deficit and explicit debt "simply reflect economically arbitr ...
... 4. Generational Accounting One prominent alternative to standard debt and deficit accounting is "generational accounting," proposed by Auerbach, Gokhale, and Kotlikoff (1991) and Kotlikoff (1992). These authors argue that the conventional deficit and explicit debt "simply reflect economically arbitr ...
Government Debt - Harvard University
... Security payments and other "continuing commitments," arguing that the appropriate way "to examine the balance between future Government obligations and resources is by projecting ... total receipts and outlays" (p. 20). As it turns out, OMB estimates the government's assets to be worth roughly as m ...
... Security payments and other "continuing commitments," arguing that the appropriate way "to examine the balance between future Government obligations and resources is by projecting ... total receipts and outlays" (p. 20). As it turns out, OMB estimates the government's assets to be worth roughly as m ...
Capital Budgeting for Small Businesses
... the same firm will pay significantly more, 20.5% (16% ^ (1-0.22)), for an issue of only $1 million. Because of these costs, small businesses with smaller capital requirements typically rely upon owners' equity and com mercial banks as their main sources of capital instead of primary capital markets ...
... the same firm will pay significantly more, 20.5% (16% ^ (1-0.22)), for an issue of only $1 million. Because of these costs, small businesses with smaller capital requirements typically rely upon owners' equity and com mercial banks as their main sources of capital instead of primary capital markets ...
- Munich Personal RePEc Archive
... The reasons for individual households to borrow money is usually to buy a home or a durable consumer good, like a car for instance, or to purchase items on a credit card for which payments will have to be made in future. In, for instance, the United States the total household liabilities as per the ...
... The reasons for individual households to borrow money is usually to buy a home or a durable consumer good, like a car for instance, or to purchase items on a credit card for which payments will have to be made in future. In, for instance, the United States the total household liabilities as per the ...
The Marginal Cost of Funds from Public Sector Borrowing
... substitution is less than one. This effect arises because the net rate of return on government debt that is used to compute the PVNR declines by more than the reduction in the economic growth rate when the tax rate increases, leading to an increase in the present value of the government’s tax base. ...
... substitution is less than one. This effect arises because the net rate of return on government debt that is used to compute the PVNR declines by more than the reduction in the economic growth rate when the tax rate increases, leading to an increase in the present value of the government’s tax base. ...
The Economics of Austerity and the Vicious Spirals of Greece
... (2012), Auerbach and Gorodnichenko (2012) among many others, there is much to gain from fiscal stimulus during a recession as the fiscal multiplier exceeds unity. Based on a Keynesian model as shown in Holden (2015), chapter three shows how the extraordinary circumstances of the Greek crisis might r ...
... (2012), Auerbach and Gorodnichenko (2012) among many others, there is much to gain from fiscal stimulus during a recession as the fiscal multiplier exceeds unity. Based on a Keynesian model as shown in Holden (2015), chapter three shows how the extraordinary circumstances of the Greek crisis might r ...
Home bias and international risk sharing
... • Average amount of income risk sharing by country i is 1 - K0 - K1gi1 • k was allowed to change over time where EHB is equity home bias for country i in time t and EHBt is the average across countries at time t • 1 – k measures amount of risk sharing obtained in period t by country i with equity ho ...
... • Average amount of income risk sharing by country i is 1 - K0 - K1gi1 • k was allowed to change over time where EHB is equity home bias for country i in time t and EHBt is the average across countries at time t • 1 – k measures amount of risk sharing obtained in period t by country i with equity ho ...
"Making Europe Safer": Wall Street Journal
... embedded leverage that, unlike borrowing on margin, cannot be suddenly reversed in a crisis. Europe's financial system would be safer if new banking regulation induced banks to move their portfolios toward European Safe Bonds, since this would cut the contagion link. Because the agency that issues E ...
... embedded leverage that, unlike borrowing on margin, cannot be suddenly reversed in a crisis. Europe's financial system would be safer if new banking regulation induced banks to move their portfolios toward European Safe Bonds, since this would cut the contagion link. Because the agency that issues E ...
Firm Life Cycle and Corporate Financing Choices
... We gather data primarily from the CRSP-COMPUSTAT merged database over the 19702004 period. We classify firms according to two distinct life cycle stages, namely growth and maturity. We focus on a snapshot of a firm’s history where these stages are more easily determined. Prior work on firm life cyc ...
... We gather data primarily from the CRSP-COMPUSTAT merged database over the 19702004 period. We classify firms according to two distinct life cycle stages, namely growth and maturity. We focus on a snapshot of a firm’s history where these stages are more easily determined. Prior work on firm life cyc ...
NBER WORKING PAPER SERIES FIRM DYNAMICS, INVESTMENT, AND DEBT PORTFOLIO:
... insight that firms cannot switch their production from domestic markets to exports costlessly, due to, for example, an inelastic world demand for exports. Firms accumulate capital over time. However, investment can only be financed through internal resources or by borrowing in the international capi ...
... insight that firms cannot switch their production from domestic markets to exports costlessly, due to, for example, an inelastic world demand for exports. Firms accumulate capital over time. However, investment can only be financed through internal resources or by borrowing in the international capi ...
Canadian Government Debt 2014: A Guide to the
... generations of Canadians, since they could face reduced benefits, tax increases, or both. In addition, the size of unfunded liabilities calls into question the structure of programs using contributions of current workers to pay out benefits to retirees. This includes programs like OAS and Medicare t ...
... generations of Canadians, since they could face reduced benefits, tax increases, or both. In addition, the size of unfunded liabilities calls into question the structure of programs using contributions of current workers to pay out benefits to retirees. This includes programs like OAS and Medicare t ...
Why Don`t Rich Countries Default? Explaining Debt/GDP and
... period’s values. We follow Arellano (2008) and determine cuto¤ values for income as a function of the face value of debt, above which the sovereign makes contractual repayments and below which she defaults. We let |^ be the cuto¤ value, given by the income state in which the face value of debt equal ...
... period’s values. We follow Arellano (2008) and determine cuto¤ values for income as a function of the face value of debt, above which the sovereign makes contractual repayments and below which she defaults. We let |^ be the cuto¤ value, given by the income state in which the face value of debt equal ...
The cost of capital of levered equity is equal to the cost of capital of
... markets, the total value of a firm should not depend on its capital structure. They reasoned that the firm’s total cash flows still equal the cash ...
... markets, the total value of a firm should not depend on its capital structure. They reasoned that the firm’s total cash flows still equal the cash ...
Sovereign yield spreads during the Euro-crisis
... Sovereign yield spreads during the Euro-crisis – Fundamental factors versus redenomination risk Abstract: The intensity of the Euro-crisis was reflected by significant increases of sovereign bond yields in the troubled countries. This has launched a hot debate whether this increase can solely be at ...
... Sovereign yield spreads during the Euro-crisis – Fundamental factors versus redenomination risk Abstract: The intensity of the Euro-crisis was reflected by significant increases of sovereign bond yields in the troubled countries. This has launched a hot debate whether this increase can solely be at ...
No.376 / September 2011 External Imbalances and Macroeconomic Policy in New Zealand
... rate appreciation through the expansion in domestic demand for nontradables and domestic goods. In turn, a strong real exchange rate is associated with a reduction in the pro…tability of exporters and a contraction in the relative size of the traded sector. Figure 6 charts the real exchange rate for ...
... rate appreciation through the expansion in domestic demand for nontradables and domestic goods. In turn, a strong real exchange rate is associated with a reduction in the pro…tability of exporters and a contraction in the relative size of the traded sector. Figure 6 charts the real exchange rate for ...
... inflation is likely to result in an erosion of the real value of any financial claims outstanding an opposed to the nominal value of such claims which may find it with receivables whose real value is diminished, thus inflation harms lenders and tend to benefit borrowers (Myers, 1984). This defect is ...
The Social Cost of Foreign Exchange Reserves
... As Martin Feldstein (1999) concluded in the aftermath of the Asian financial crisis, developing countries cannot rely on the International Monetary Fund or reforms in the ‘international financial architecture’ to protect themselves from such crises. Nor, Feldstein reasoned, is it enough to rely on s ...
... As Martin Feldstein (1999) concluded in the aftermath of the Asian financial crisis, developing countries cannot rely on the International Monetary Fund or reforms in the ‘international financial architecture’ to protect themselves from such crises. Nor, Feldstein reasoned, is it enough to rely on s ...
NBER WORKING PAPER SERIES GUNBOATS, REPUTATION, AND SOVEREIGN REPAYMENT:
... By the end of 1862, Confederate revenues from money, debt, and taxes began to fall with rising inflation. A European loan could raise specie to buy guns and ships abroad as well as replenish Confederate gold reserves and bills of exchange depleted by the purchase of arms in England. Raising funds in ...
... By the end of 1862, Confederate revenues from money, debt, and taxes began to fall with rising inflation. A European loan could raise specie to buy guns and ships abroad as well as replenish Confederate gold reserves and bills of exchange depleted by the purchase of arms in England. Raising funds in ...
Interest Rates in Mexico The Role of Exchange Rate Expectations
... function) to the implicit yield from the secondary market of Mexico's external debt. That is, it is postulated that domestic interest rates in Mexico are closely associated to the international perception of Mexico's creditworthiness, which is captured in the behavior of itsm. 1/ The implicit hypoth ...
... function) to the implicit yield from the secondary market of Mexico's external debt. That is, it is postulated that domestic interest rates in Mexico are closely associated to the international perception of Mexico's creditworthiness, which is captured in the behavior of itsm. 1/ The implicit hypoth ...
Government debt
Government debt (also known as public debt, national debt and sovereign debt) is the debt owed by a central government. (In federal states, ""government debt"" may also refer to the debt of a state or provincial, municipal or local government.) By contrast, the annual ""government deficit"" refers to the difference between government receipts and spending in a single year, that is, the increase of debt over a particular year.Government debt is one method of financing government operations, but it is not the only method. Governments can also create money to monetize their debts, thereby removing the need to pay interest. But this practice simply reduces government interest costs rather than truly canceling government debt, and can result in hyperinflation if used unsparingly.Governments usually borrow by issuing securities, government bonds and bills. Less creditworthy countries sometimes borrow directly from a supranational organization (e.g. the World Bank) or international financial institutions.As the government draws its income from much of the population, government debt is an indirect debt of the taxpayers. Government debt can be categorized as internal debt (owed to lenders within the country) and external debt (owed to foreign lenders). Another common division of government debt is by duration until repayment is due. Short term debt is generally considered to be for one year or less, long term is for more than ten years. Medium term debt falls between these two boundaries. A broader definition of government debt may consider all government liabilities, including future pension payments and payments for goods and services the government has contracted but not yet paid.