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This paper investigates the effect of structural characteristics on debt limits of middle income countries. Two equations relate the probability of default to the interest rate. First, the probability of default is estimated with a logit model. Second, the assumption of non-arbitrage opportunity...
Persistent link: https://www.econbiz.de/10011914290
This paper provides robust empirical evidence that government effectiveness is a key determinant of sovereign defaults. Government effectiveness is measured by a broad-based perception index of the Worldwide Governance Indicators database (WGI) disseminated by the World Bank. Public debt and...
Persistent link: https://www.econbiz.de/10011914292
Using a large panel of OECD countries this paper studies the link between debt and macroeconomic stability by comparing the evolution of balance sheet aggregates and economic output in high- and lowdebt environments. While the relationship between debt and economic growth has been extensively...
Persistent link: https://www.econbiz.de/10009696437
This paper examines global credit intermediation through the lens of financial markets and financial intermediaries in the post-crisis period during which highly accommodative monetary policies contributed to investors’ search for yield. It reviews the extent to which non-bank intermediation...
Persistent link: https://www.econbiz.de/10012312160
Persistent link: https://www.econbiz.de/10000961275
This report updates and extends earlier assessments of quantitative inflation perceptions and expectations of consumers … inflation are found to be higher than actual HICP (Harmonised Index of Consumer Prices) inflation over the entire sample period … (2004-2015). The analysis shows that European consumers hold different opinions of inflation depending on their income, age …
Persistent link: https://www.econbiz.de/10011636136
Persistent link: https://www.econbiz.de/10009510989
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The effect on the household consumption price index from possible sources of error in capturing digital products depends on the weight of the affected products. To calculate upper bounds for this effect, we apply weights based on the average structure of household consumption in OECD countries...
Persistent link: https://www.econbiz.de/10011991922
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