1.

Record Nr.

UNINA9910808805603321

Autore

Kinoshita Noriaki

Titolo

Government debt and long-term interest rates / / prepared by Noriaki Kinoshita

Pubbl/distr/stampa

[Washington, D.C.], : International Monetary Fund, Fiscal Affairs Dept., 2006

ISBN

1-4623-6394-6

1-4527-8849-9

1-282-55819-6

1-4519-0859-8

9786613822338

Edizione

[1st ed.]

Descrizione fisica

1 online resource (25 p.)

Collana

IMF working paper ; ; WP/06/63

Soggetti

Debts, Public - Econometric models

Interest rates - Econometric models

Lingua di pubblicazione

Inglese

Formato

Materiale a stampa

Livello bibliografico

Monografia

Note generali

"March 2006."

Nota di bibliografia

Includes bibliographical references.

Nota di contenuto

""Contents""; ""I. INTRODUCTION""; ""II. AN OVERVIEW OF THE LITERATURE""; ""III. THEORETICAL ANALYSIS""; ""IV. EMPIRICAL EVIDENCE""; ""V. CONCLUSION""; ""References""; ""DERIVATION OF DYNAMIC EQUILIBRIUM CONDITIONS""; ""DATA SOURCES AND DEFINITIONS""

Sommario/riassunto

This paper examines the relationship between government debt and long-term interest rates. A dynamic general equilibrium model that incorporates debt nonneutrality is specified and solved, and numerical simulations using the model are undertaken. In addition, empirical evidence using panel data for 19 industrial countries is examined. The estimation provides some evidence supporting the theoretical predictions: the paper finds that the simulated and estimated interest rate effects of government debt tend to be small. However, an increase in government consumption and debt leads to a considerably larger effect. The paper also argues that, although the interest rate effects of pure crowding out may be limited, the economic impact of accumulating government debt cannot be ignored.