This paper presents and analyzes an endogenous growth model with public capital and progressive taxation. Two versions are considered: The first versions assumes that the budget of the government is balanced at each point of time. The second allows for public debt but asserts that the ratio of the primary surplus to gross domestic income is a positive linear function of the debt income ratio wh...

This paper derives the optimal debt ratio and dividend payment strategies for an insurance company. Taking into account the impact of reinsurance policies and claims from the credit derivatives, the surplus process is stochastic that is jointly determined by the reinsurance strategies, debt levels, and unanticipated shocks. The objective is to maximize the total expected discounted utility of d...

This paper introduces the ratio of debt to cash flow (D/CF) of nations and their economic sectors to macroprudential analysis, particularly as an indicator of systemic risk and vulnerabilities. While leverage is oftentimes linked to the vulnerability of a nation, the stock of total debt and the flow of gross savings is a less explored measure. Cash flows certainly have a well-known connection t...

This paper presents and analyzes an endogenous growth model with public capital and public debt. It is assumed that the ratio of the primary surplus to gross domestic income is a positive linear function of the debt income ratio which assures that public debt is sustainable. The paper then derives necessary conditions for the existence of a sustainable balanced growth path for the analytical mo...

Penelitian ini bertujuan untuk menganalisis pengaruh Financial Distress dan Debt To Equity Ratio terhadap prinsip konservatisme akuntansi pada perusahaan sektor Transportasi yang terdaftar di Bursa Efek Indonesia. Metode penelitian menggunakan metode kuantitatif dengan data cross section time series, diperoleh dari BEI selama tiga tahun 2018-2020. Pengolahan diuji statistik melalui asumsi klasi...

This paper purports to apply the Kydland-Prescott framework of dynamic inconsistency to the case of fiscal policy, by considering the trade-off between output and debt stabilization. The Government budget constraint provides the link between debt dynamics and the level of activity, influenced by fiscal policy. Contrary to what happens in the monetary policy framework, however, a commitment is n...

This paper explores the impact of China’s local government debt on economic growth. This analysis, based on a panel of 31 provinces over 14 years, takes into account a broad range of economic growth determinants as well as various estimation issues including heteroskedascity and omitted variable. The empirical results suggest an inverse relationship between China’s local government debt and eco...