We study the link between homeownership, mortgage debt, and entrepreneurship using a model of occupational choice and … rate of interest on liquid wealth: (i) mortgage debt, by amplifying risk aversion, diminishes the likelihood that … homeowners start a business; and (ii) the negative relation between mortgage debt and entrepreneurship is more pronounced when …

strong link between household sector debt and aggregate demand. We strengthen these results by an analysis for Spanish … provinces. The level of household debt in the Spanish provinces is highly significant for changes in aggregate demand that … that on aggregate about 1/3 of the increase in Spanish unemployment can be traced back to high household debt levels. …

This paper investigates the long-run effects of public debt and inflation on economic growth. Our contribution is both … over the 1965-2010 period, we find significant negative long-run effects of public debt and inflation on growth. Our … results indicate that, if the debt to GDP ratio is raised and this increase turns out to be permanent, then it will have …

I analyze how lack of commitment affects the maturity structure of sovereign debt. Governments balance benefits of …-term debt affects default and rollover decisions by subsequent policy makers. The equilibrium maturity structure is shaped by … revenue losses on inframarginal units of debt that reflect the price impact of these decisions. The model predicts an interior …

What is an optimal or a sustainable external debt - for a country, region or sector? How should one monitor and … evaluate debt to preclude a crisis? We use stochastic optimal control/dynamic programming to derive an optimal debt. The … explain the implications of DP. An explicit example is the US Agricultural debt crisis. …

’s production side and on welfare, but not on its stock of foreign debt and the country specific risk premium, and large part of the … dynamics and a considerable reduction in foreign debt, allowing higher consumption in the long run and creating an … intertemporal welfare gain, even though unemployment increases strongly in the short run. A 50% haircut of foreign debt …

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. …

are considerably larger in periods of private debt overhang. In particular, we find significant crowding-out of personal … consumption and investment in low-debt states, resulting in multipliers that are significantly below one. Conversely, in periods … of private debt overhang, there is a strong crowding-in effect, while multipliers are much larger than one. In high-debt …