Long-Term Interest Rates and Public Debt Maturity

For a sample of sixteen OECD countries over the period 1980-2007 we show that, for given debt-GDP ratio, an increase in the maturity of the public debt by one year lowers its long-term interest rate by around 20-30 basis points. This effect is stronger for countries with higher average inflation or debt.

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Year of publication:	2013
Authors:	Sakalauskaite, Ieva ; Beetsma, Roel ; Giuliodori, Massimo
Publisher:	Munich : Center for Economic Studies and ifo Institute (CESifo)
Subject:	debt \| maturity \| long-term interest rates \| inflation \| OECD

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Series:	CESifo Working Paper ; 4408
Type of publication:	Book / Working Paper
Type of publication (narrower categories):	Working Paper
Language:	English
Other identifiers:	76977718X [GVK] hdl:10419/84179 [Handle] RePec:ces:ceswps:_4408 [RePEc]
Classification:	E43 - Determination of Interest Rates; Term Structure Interest Rates ; E44 - Financial Markets and the Macroeconomy ; H62 - Deficit; Surplus ; H63 - Debt; Debt Management ; H68 - Forecasts of Budgets, Deficits, and Debt
Source:	EconStor

Persistent link: https://www.econbiz.de/10010323031