The Commitment Benefit of Consols in Government Debt Management

The Optimality of Consols in Government Debt Management∗

We consider optimal government debt maturity in a deterministic economy in which the government can issue any arbitrary maturity structure and in which bond prices are a function of the government’s current primary surplus and the path of future primary surpluses. The government sequentially chooses policy, taking into account how the current primary surplus and the structure of maturity issuan...

Credit Markets, Limited Commitment, and Government Debt

A dynamic model with credit under limited commitment is constructed, in which limited memory can weaken the effects of punishment for default. This creates an endogenous role for government debt in credit markets. Default can occur in equilibrium, and government debt essentially plays a role as collateral and thus improves borrowers’ incentives. The optimal provision of government debt acts to ...

Essays on commitment debt structure and government

The Optimal Level of Government Debt in Iran

The purpose of the current study is to determine the optimum level of the governmentchr('39')s debt for the period of the sixth plan period of the economic, social a eviation of the target variables economic growth rate, inflation rate, real GDP and nd cultural development of the government. Therefore, a function of inter periodic loss welfare has been devised for the policy maker in which the ...

The Macroeconomic Effects of Government Debt in Iran

One of the major problems in Iranian economy is continuous deficit in the budget operating balance due to the non-optimal government size. The government often financed a part of this deficit by debt cearation. Government debts depends on its size and decomposition have variety macroeconomic effects. So, this study investigated the macroeconomic effects of government debt in iran during 1352-13...