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Expected Future Tax Policy and Tax-Exempt Bond Yields
Poterba, James M. - 1984
This paper tests several competing models of municipal bond market equilibrium. It analyzes the influence of changes in …
Persistent link: https://www.econbiz.de/10012477619
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A Theory of Social Impact Bonds
Tortorice, Daniel L. - 2020
Social impact bonds (SIBs) are an innovative financing mechanism for public goods. In a SIB, an investor provides capital to a service provider for a social intervention. The investor receives a return based on the outcome of the intervention relative to a predetermined benchmark. We describe...
Persistent link: https://www.econbiz.de/10012481382
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Modeling Bond Yields in Finance and Macroeconomics
Diebold, Francis X. - 2005
From a macroeconomic perspective, the short-term interest rate is a policy instrument under the direct control of the central bank. From a finance perspective, long rates are risk-adjusted averages of expected future short rates. Thus, as illustrated by much recent research, a joint...
Persistent link: https://www.econbiz.de/10012467596
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Debt as Safe Asset
Brunnermeier, Markus Konrad; Merkel, Sebastian A.; … - National Bureau of Economic Research - 2022
The price of a safe asset reflects not only the expected discounted future cash flows but also future service flows, since retrading allows partial insurance of idiosyncratic risk in an incomplete markets setting. This lowers the issuers' interest burden and allows the government to run a...
Persistent link: https://www.econbiz.de/10012814401
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Take the Short Route : Equilibrium Default and Debt Maturity
Aguiar, Mark - 2016
long as default is not preferable, remain passive in long-term bond markets, making payments and retiring long-term bonds …-term bond market. We show that any attempt to manipulate the existing maturity profile of outstanding long-term bonds generates … losses, as bond prices move against the sovereign. Our results hold regardless of the shape of the yield curve. The yield …
Persistent link: https://www.econbiz.de/10012455833
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A Model of Safe Asset Determination
He, Zhiguo - 2016
coordinated Euro-area-wide safe bond design. Eurobonds deliver welfare benefits only when they make up a sufficiently large …
Persistent link: https://www.econbiz.de/10012456404
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The Long and the Short of It : Sovereign Debt Crises and Debt Maturity
Fernández, Raquel - 2014
We present a simple model of sovereign debt crises in which a country chooses its optimal mix of short and long-term bonds subject to standard contracting frictions: the country cannot commit to repay its debts nor to a specific path of future debt issues, and contracts cannot be made state...
Persistent link: https://www.econbiz.de/10012457880
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Inflating Away the Public Debt? An Empirical Assessment
Hilscher, Jens - 2014
We propose and implement a method that provides quantitative estimates of the extent to which higher- than-expected inflation can lower the real value of outstanding government debt. Looking forward, we derive a formula for the debt burden that relies on detailed information about debt maturity...
Persistent link: https://www.econbiz.de/10012458328
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Take the Short Route : How to Repay and Restructure Sovereign Debt with Multiple Maturities
Aguiar, Mark - 2013
bonds. Our main finding is that when reduction of debt is optimal, the sovereign should remain passive in the long-term bond … these bonds. The only active margin is the short-term bond market, which involves partial roll over of such debt. Any active …
Persistent link: https://www.econbiz.de/10012458946
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Bond Market Clienteles, the Yield Curve, and the Optimal Maturity Structure of Government Debt
Guibaud, Stéphane - 2013
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 the absence of distortionary taxes and...
Persistent link: https://www.econbiz.de/10012459739