Bitte verwenden Sie diesen Link, um diese Publikation zu zitieren, oder auf sie als Internetquelle zu verweisen: https://hdl.handle.net/10419/264779 
Erscheinungsjahr: 
2013
Schriftenreihe/Nr.: 
Working Paper No. 187
Verlag: 
Oesterreichische Nationalbank (OeNB), Vienna
Zusammenfassung: 
We study the sustainability of public debt in a closed production economy where a benevolent government chooses scal policies, including haircuts on its outstanding debt, in a discretionary manner. Government bonds are held by domestic agents to smooth consumption over time and because they provide collateral and liquidity services. We characterize a recursive equilibrium where public debt amounts to a sizeable fraction of output in steady state and is nevertheless fully serviced by the government. In a calibrated economy, steady state debt amounts to around 84% of output, the government's default threshold is at around 94% of output, and the haircut on outstanding debt at this threshold is around 40%. Both reputational costs of default and contemporaneous costs due to lost collateral and liquidity are essential to generate these empirically plausible predictions.
Schlagwörter: 
sustainability
nancial frictions
sovereign default
domestic debt
endogenous haircut
JEL: 
E44
E62
H21
H63
Dokumentart: 
Working Paper

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