The commitment benefit of consols in government debt management
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- dc.contributor.author Debortoli, Davide
- dc.contributor.author Nunes, Ricardo
- dc.contributor.author Yared, Pierre
- dc.contributor.other Universitat Pompeu Fabra. Departament d'Economia i Empresa
- dc.date.accessioned 2024-11-14T10:10:16Z
- dc.date.available 2024-11-14T10:10:16Z
- dc.date.issued 2021-05-13
- dc.date.modified 2024-11-14T10:08:05Z
- dc.description.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.
- dc.format.mimetype application/pdf*
- dc.identifier https://econ-papers.upf.edu/ca/paper.php?id=1781
- dc.identifier.citation American Economic Review: Insights, forthcoming
- dc.identifier.uri http://hdl.handle.net/10230/68690
- dc.language.iso eng
- dc.relation.ispartofseries Economics and Business Working Papers Series; 1781
- dc.rights L'accés als continguts d'aquest document queda condicionat a l'acceptació de les condicions d'ús establertes per la següent llicència Creative Commons
- dc.rights.accessRights info:eu-repo/semantics/openAccess
- dc.rights.uri http://creativecommons.org/licenses/by-nc-nd/3.0/es/
- dc.subject.keyword public debt
- dc.subject.keyword optimal taxation
- dc.subject.keyword fiscal policy
- dc.subject.keyword Macroeconomics and International Economics
- dc.title The commitment benefit of consols in government debt management
- dc.title.alternative
- dc.type info:eu-repo/semantics/workingPaper