JOURNAL ARTICLE

CO-MOVEMENT OF STEADY-STATE GOVERNMENT DEBT AND HOUSEHOLD DEBT.

  • Published In: Singapore Economic Review, 2024, v. 69, n. 7. P. 2295 1 of 3

  • Database: Business Source Ultimate 2 of 3

  • Authored By: LEE, INSOOK 3 of 3

Abstract

To understand whether and how movements of government debt and household debt are related, stationary equilibrium government debt and household debt are characterized in a politico-economic model where office-seeking policymakers decide government debt and individual voters can borrow facing uninsurable idiosyncratic income shocks. An increase in uninsurable income risk unconditionally raises stationary equilibrium government debt and aggregate household debt together, while an increase in household-loan collateral value or population aging conditionally does so, entailing positive correlations between these two debts' movements. In contrast, an increase in interest rate conditionally causes these two debts to move in the opposite directions. [ABSTRACT FROM AUTHOR]

Additional Information

  • Source:Singapore Economic Review. 2024/12, Vol. 69, Issue 7, p2295
  • Document Type:Article
  • Subject Area:Social Sciences and Humanities
  • Publication Date:2024
  • ISSN:0217-5908
  • DOI:10.1142/S0217590821500648
  • Accession Number:181864745
  • Copyright Statement:Copyright of Singapore Economic Review is the property of World Scientific Publishing Company and its content may not be copied or emailed to multiple sites without the copyright holder's express written permission. Additionally, content may not be used with any artificial intelligence tools or machine learning technologies. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

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