Showing 1 - 10 of 12
.  Secondly, the optimal neutrality of government spending is robust to the issuance of public debt.  In the presence of debt …
Persistent link: https://www.econbiz.de/10004999238
firm’s cash flow into a ‘safe’ claim (debt) and a ‘risky’ claim (equity). The former, being … provides the latter a greater incentive to collect information than a monitor holding the aggregate claim would have. Thus debt … transmitting information from equity to debt holders. This provides a novel argument as to why information contained in stock …
Persistent link: https://www.econbiz.de/10011146261
We review two proposals for debt forgiveness; the Highly Indebted Poor Country Initiative (HIPC) and the Jubilee 2000 … Coalition Initiative (J2K). We then consider the workhorse model of debt forgiveness (Krugman 1988). We show that the workhorse …-optimal debt-overhang contract is derived, with an incentive parameter greater than the marginal social benefit of extra effort …
Persistent link: https://www.econbiz.de/10005047754
Inspite of wide and long-standing support among economists for indexation of loan contracts there has been relatively little use of indexation, except in situations of extremely high inflation. The object of this paper is to provide a (theoretical) explanation for this puzzling phenomenon based...
Persistent link: https://www.econbiz.de/10005047922
Persistent link: https://www.econbiz.de/10005047957
We examine the impact of different degrees of fiscal feedback on debt in an economy with nominal rigidities where … find the optimal level of fiscal feedback to be small. There is a clear discontinuity in the behaviour of monetary policy …
Persistent link: https://www.econbiz.de/10005090694
Fiscal councils now exist in a number of countries.  This paper first considers the extent of deficit bias, potential explanations for it, and how independent institutions could help reduce it.  Are fiscal councils complements to or substitutes for fiscal rules, and why do none at  present...
Persistent link: https://www.econbiz.de/10008852051
This paper addresses the hotly-debated question: do Chinese firms overinvest?  A firm-level dataset of 100,000 firms over the period of 2000-07 is employed for this purpose.  We initially calculate measures of investment efficiency, which is typically negatively associated with...
Persistent link: https://www.econbiz.de/10008763475
funds. We analyse the behaviour of share prices around the ex-dividend day both before and after the reform to test …
Persistent link: https://www.econbiz.de/10005047987
Many observers believe that times are growing harder for young people in Western society. This paper looks at the evidence and finds that conventional wisdom appears to be wrong.
Persistent link: https://www.econbiz.de/10005475147