We study the interactions between sovereign debt default and maturity choice in a setting with limited commitment for …-term bond market. We show that any attempt to manipulate the existing maturity profile of outstanding long-term bonds generates …

maturity in the event of crises, and show that both necessarily improve ex ante welfare if they do not decrease expected …

maturity management, as will typically be required to address rollover crisis risk, will be delayed until the end of the …

We propose a clientele-based model of the yield curve and optimal maturity structure of government debt. Clienteles are … generations of agents at different lifecycle stages in an overlapping-generations economy. An optimal maturity structure exists in …--effects that we also confirm empirically in a panel of OECD countries. Moreover, under the optimal maturity structure, catering to …

associated with increases in nominal interest rates over the maturity of the outstanding long-term debt. After a positive …

maturity. But at high levels of debt, a strong inverse relation emerges. We start the paper by documenting this inverse … relation for those OECD Countries which have reached very high levels of debt. We then provide a theory of the joint movements … of debt and maturity which can explain both sets of facts. It is based on the idea that, at high levels of debt, the …

This paper develops a model of optimal government debt maturity in which the government cannot issue state … expensive to finance ex-ante since they exacerbate the problem of lack of commitment ex-post. In contrast, a flat maturity … policy distortions. We show that the optimal time-consistent maturity structure is nearly flat because reducing average …

of the joint determination of the maturity and cost of external borrowing highlights the role played by self …