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In this paper, we propose an inflated mixture model to deal with multimodality in loss given default data. We propose a mixed of degenerate distributions, to handle zeros and ones excess, with a mixture of to-be-chosen bounded distributions for non-zeros and non-ones proportions. By applying the...
Persistent link: https://www.econbiz.de/10013018884
The main focus of the present paper is to analyze the impacts of financial policy on inflation rates. The analysis … utilized to reflect the relations between financial policy and inflation. Thus, more lights are shed on the fact that the first … components represented in governmental expenditure and taxation and the dependant variable inflation. The results show that there …
Persistent link: https://www.econbiz.de/10013107752
This paper investigates the international spillovers of government debt and the associated risk of inflation within a … with the level of debt in the PAYG country. Higher inflation risk harms both countries. Actually, in contrast to the debt … can shift part of its long-term debt burden to the funded country. Moreover, the PAYG country gains from unexpected …
Persistent link: https://www.econbiz.de/10010326045
when investment is debt-financed. In such a case a firm pays the creditor not only the sum of annual interest (initial … the investment is debt-financed, the interest payment additionally reduces the corporate tax base. The research findings … optimum debt maturity tends to correlate positively with the corporate tax rate but negatively with the interest rate. In the …
Persistent link: https://www.econbiz.de/10011402695
This paper investigates the international spillovers of government debt and the associated risk of inflation within a … with the level of debt in the PAYG country. Higher inflation risk harms both countries. Actually, in contrast to the debt … can shift part of its long-term debt burden to the funded country. Moreover, the PAYG country gains from unexpected …
Persistent link: https://www.econbiz.de/10011382085
is stronger for countries with higher average inflation or debt. …For a sample of sixteen OECD countries over the period 1980-2007 we show that, for given debt-GDP ratio, an increase in … the maturity of the public debt by one year lowers its long-term interest rate by around 20-30 basis points. This effect …
Persistent link: https://www.econbiz.de/10010189835
Persistent link: https://www.econbiz.de/10010245537
Persistent link: https://www.econbiz.de/10012406207
This paper explores the effect of inflation supply and demand shocks on government debt. It identifies the shocks using … regressions and local projections suggest that supply shocks lead to persistent increases in government debt, while demand shocks … result in long-lasting declines. Furthermore, high debt levels increase economic vulnerability, amplifying the impacts of …
Persistent link: https://www.econbiz.de/10014536631
This paper assesses the First Review Under the Staff-Monitored Program (SMP) for Afghanistan. The authorities have met all of the indicative quantitative targets set out under the SMP and all the structural benchmarks, except the benchmark on licensing of commercial banks, which was only partly...
Persistent link: https://www.econbiz.de/10005825122