Present-biased government and sovereign debt dynamics

DOI10.1016/J.JMATECO.2021.102579MaRDI QIDQ2075645zbMATH OpenOpenAlexFDO

Authors Jinqiang Yang, Siqi Zhao, Yuan Li

Publication date 15 February 2022

Published in Journal of Mathematical Economics (Search for Journal in Brave)

Full work available at URL https://doi.org/10.1016/j.jmateco.2021.102579

zbMATH Keywords

commitmentpresent-biased preferencessovereign debt

Mathematics Subject Classification ID

Macroeconomic theory (monetary models, models of taxation) (91B64) Financial networks (including contagion, systemic risk, regulation) (91G45)

Recommendations

• Investment stimuli under government present-biased time preferences
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Cites work

• A Positive Theory of Fiscal Deficits and Government Debt
• Continuous Markov equilibria with quasi-geometric discounting
• Distortionary taxes and public investment when government promises are not enforceable
• Golden Eggs and Hyperbolic Discounting
• Growth in the Shadow of Expropriation *
• Hedge fund's dynamic leverage decisions under time-inconsistent preferences
• Instantaneous Gratification *
• Investment Cycles and Sovereign Debt Overhang
• Optimal capital structure and investment decisions under time-inconsistent preferences
• Optimal consumption with time-inconsistent preferences
• Optimal time-consistent government debt maturity
• Self-Fulfilling Debt Crises
• Take the short route: equilibrium default and debt maturity

Cited in

(7)

• Political power and the credibility of government debt
• Investment stimuli under government present-biased time preferences
• A continuous-time model of sovereign debt
• Public debt and macroeconomic activity: a predictive analysis for advanced economies
• Government Debt Management: The Long and the Short of It
• The macroeconomic implications of deficit financing under present bias
• Present bias: understanding zero leverage policy and unstable capital structure

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