Optimal reduction of public debt under partial observation of the ...

We provide a general formulation of the model in which the level of the debt-to-GDP ratio and the value of the macroeconomic indicator evolve as a diffusion ...

Optimal Reduction of Public Debt under Partial Observation ... - arXiv

We consider a government that aims at reducing the debt-to-gross domestic product (GDP) ratio of a country.

Optimal Reduction of Public Debt under Partial Observation of the ...

The government's criterion is to minimize the sum of the total expected costs of holding debt and of debt's reduction policies. We model this problem as a ...

Optimal reduction of public debt under partial observation of the ...

Optimal reduction of public debt under partial observation of the economic growth. Center for Mathematical Economics Working Papers, No. 608.

Optimal reduction of public debt under partial observation of the ...

The government's criterion is to minimise the sum of the total expected costs of holding debt and of debt reduction policies. We model this problem as a ...

Optimal reduction of public debt under partial observation of the ...

Optimal reduction of public debt under partial observation of the economic growth. Finance and Stochastics. Provided in Cooperation with:.

Optimal reduction of public debt under partial observation of the ...

Any decrease of the debt ratio results in proportional costs, and the government aims at choosing a debt-reduction policy that minimises the ...

optimal reduction of public debt under partial observation of the ...

Abstract. We consider a government that aims at reducing the debt-to-gross domestic product. (GDP) ratio of a country. The government observes the level of ...

Optimal reduction of public debt under partial observation of the ...

AbstractWe consider a government that aims at reducing the debt-to-(gross domestic product) (GDP) ratio of a country. The government observes the level of ...

(PDF) Optimal Reduction of Public Debt under Partial Observation of ...

We consider a government that aims at reducing the debt-to-gross domestic product (GDP) ratio of a country. The government observes the level of the ...

Optimal Reduction of Public Debt under Partial Observation of the ...

Callegaro, Giorgia; Ceci, Claudia; Ferrari, Giorgio, 2019: Optimal Reduction of Public Debt under Partial Observation of the Economic Growth.

On the Optimal Management of Public Debt: a Singular Stochastic ...

In [22] , when optimally reducing the debt ratio, the government takes into consideration the evolution of the inflation rate of the country. The latter evolves ...

On the Optimal Management of Public Debt: a Singular Stochastic ...

We show that it is optimal for the government to adopt a policy that keeps the debt-to-GDP ratio under an inflation-dependent ceiling.

Optimal Correction of the Public Debt and Measures of Fiscal ...

Callegaro et al. (2020) study the problem of a government aiming at reducing the debt ratio under partial information where the underlying macroeconomic ...

The anatomy of public debt reversals: new empirical insights from ...

In addition, expenditure-led policies tend to be more powerful as compared to revenue-based measures in eroding the public debt ratios. The study's key policy ...

Optimal correction of the public debt and measures of fiscal soundness

Under the optimal solution, the surplus reactivity to the debt-GDP ratio is independent of the debt ratio itself, but its size depends on the ...

“A Stochastic Non-Zero-Sum Game of Controlling the Debt-to-GDP ...

The traditional analysis of public debt has shown that high public debt ... Optimal Reduction of Public Debt under Partial Observation of the.

Optimal Public Debt Management and Liquidity Provision

By doing so, the planner effectively “starves the economy for liquidity” in order to raise the liquidity premium, reduce interest-rate costs, and mitigate the ...

A Stochastic Non-zero-Sum Game of Controlling the Debt-to-GDP ...

In particular, we show that, while it is always optimal for the government to devise an appropriate debt issuance policy, the legislator should ...

A stochastic control approach to public debt management

Optimal reduction of public debt under partial observation of the economic growth ... We consider a government that aims at reducing the debt-to-( ...