dc.contributor.author | Ardagna, Silvia | |
dc.contributor.author | Caselli, Francesco | |
dc.contributor.author | Lane, Timothy | |
dc.date.accessioned | 2009-02-09T18:29:06Z | |
dc.date.issued | 2007 | |
dc.identifier.citation | Ardagna, Silvia, Francesco Caselli, and Timothy Lane. 2006. Fiscal Discipline and the Cost of Public Debt Service: Some Estimates for OECD Countries. The B.E. Journal of Macroeconomics 7(1). | en |
dc.identifier.issn | 1555-0486 | en |
dc.identifier.uri | http://nrs.harvard.edu/urn-3:HUL.InstRepos:2579739 | |
dc.description.abstract | We use a panel of 16 OECD countries over several decades to investigate the effects of government debts and deficits on long-term interest rates. In simple static specifications, a one-percentage-point increase in the primary deficit relative to GDP increases contemporaneous long-term interest rates by about 10 basis points. In a vector autoregression (VAR), the same shock leads to a cumulative increase of almost 150 basis points after 10 years. The effect of debt on interest rates is non-linear: only for countries with above-average levels of debt does an increase in debt affect the interest rate. World fiscal policy is also important: an increase in total OECD-government borrowing increases each country's interest rates. However, domestic fiscal policy continues to affect domestic interest rates even after controlling for worldwide debts and deficits. | en |
dc.description.sponsorship | Economics | en |
dc.language.iso | en_US | en |
dc.publisher | THe Berkeley Electronic Press | en |
dc.relation.isversionof | http://dx.doi.org/10.2202/1935-1690.1417 | en |
dash.license | LAA | |
dc.title | Fiscal Discipline and the Cost of Public Debt Service: Some Estimates for OECD Countries | en |
dc.type | Journal Article | |
dc.description.version | Accepted Manuscript | |
dc.relation.journal | The B.E. Journal of Macroeconomics | en |
dash.depositing.author | Ardagna, Silvia | |
dc.identifier.doi | 10.2202/1935-1690.1417 | * |
dash.contributor.affiliated | Ardagna, Silvia | |