The Market Timing theory of capital structure states that firms that go to the financial markets at the right time can permanently lower their debt ratios. For equity markets, Baker and Wurgler (2002) show that low leverage firms are those that had raised funds when their market valuations (i.e....

France has a track record of persistent general government deficits, partly reflecting pro-cyclical fiscal policies in upswings. This has resulted in a quadrupling of its public debt-to-GDP ratio since the 1970s to above 80% of GDP. Reducing public debt is crucial because a high level of public...

Purpose – The purpose of this paper is to present a dynamic macroeconomic framework that identifies the fundamental structure of public debt accumulation process in developing countries and its two way linkages with economic growth and public finances. Within this framework, the objective of...

This study presents novel empirical evidence on the optimal disaggregated public debt-growth threshold in the WAMZ over the period 1996-2022. Determining the public debt-growth threshold in a disaggregated form is crucial for macroeconomic policy measures in the region to curb high public debt...

Hager's project examines the historical development of US public debt ownership and its political implications. His main innovation is to approach the topic from the perspective of disaggregated social class and frame questions of public debt ownership in terms of social inequality and power. He...

Hager’s project examines the historical development of US public debt ownership and its political implications. His main innovation is to approach the topic from the perspective of disaggregated social class and frame questions of public debt ownership in terms of social inequality and power....

This paper examines the effect of growth-enhancing policies in an R&D-based endogenous growth model when the government does not have the ability to raise taxes to finance the required expenses. We show that the government can increase the economic growth rate by debt-financed R&D subsidies...