The initial government debt-to-GDP ratio and the government’s commitment play a pivotal role in determining the welfare-optimal speed of fiscal consolidation in the management of a debt crisis. Under commitment, for low or moderate initial government debt-to-GPD ratios, the optimal consolidation is very slow. A faster pace is optimal when the economy starts from a high level of public debt impl...

Changes in aggregate household debt in the United States may contain information about the current state of the economy and may influence its future path. When a large share of household income is devoted to debt repayment, households have fewer funds available to purchase goods and services. Households with high debt levels relative to income are also more likely to default on their obligation...

This article samples 293 listed companies on GEM (Growth Enterprise Market) of Shenzhen Stock Exchange, uses SPSS 17.0 to analyze their annual report data from 2009 to 2011. The results show that corporate performance will increase and then decrease along with the improvement of debt asset ratio, and achieve optimized performance at about 50%-60% of DAR (debt asset ratio); short-term borrowings...

Following Burger (2012)'s approach of calculating stabilized debt to GDP ratios this paper computes these levels for ve selected Eurozone economies. Such a debt ratio indicates to which level the economy would converge to, based on its past country-speci c behavior in combination with the scal response mechanism. The outcome shows that for most of the selected economies the current (to some ext...

We develop an agency model of financial contracting. We derive long-term debt, a line of credit, and equity as optimal securities, capturing the debt coupon and maturity; the interest rate and limits on the credit line; inside versus outside equity; dividend policy; and capital structure dynamics. The optimal debt-equity ratio is history dependent, but debt and credit line terms are independent...

This paper traces the origins of World Bank indicators of debt-distress and their employment as HIPC sustainability targets. These targets are interpreted as ‘switching values’, below which countries are (on average) expected to avoid debt service problems, but as such, they do not take into account that countries encounter debt service problems for a variety of reasons and at different levels ...

Public debt is one of the important economic variables that quantitatively describes a nation’s economy. Because bankruptcy is a risk faced even by institutions as large as governments (e.g., Iceland), national debt should be strictly controlled with respect to national wealth. Also, the problem of eliminating extreme poverty in the world is closely connected to the study of extremely poor debt...

Tujuan penelitian ini untuk mengetahui pengaruh Debt to Equity Ratio, Price Earning Current Ratio terhadap Harga Saham dan Ratio. Desain bersifat asosiatif dengan jenis kuantitatif. Data yang digunakan adalah data sekunder berupa laporan keuangan dipublikasikan oleh Bursa Efek Indonesia. Teknik pengambilan sampel menggunakan metode purposive sampling sehingga terpilih 4 perusahaan sebagai penel...

This paper aims to determine the impact of dividend policy on stock price volatility by taking firms listed on Tehran stock exchange.  A sample of 68 listed companies from Tehran stock exchange is examined for a period from 2001 to 2012.  The estimation is based on cross-sectional ordinary least square regression analysis to find the relationship between share price volatility and dividend poli...