From the view of current conditions and developing trends of the debt scale in Chinese local government, the debt crisis will explode in the near future if it cannot be controlled in an effective way. According to the regional distribution in China, except for Beijing, Shanghai, Tianjin, and Hainan, the debt risk is mainly concentrated in the western region. In a further step, it can be seen th...

If the present generation refuses to bear burden of mitigating global heating, could we motivate sufficient action by shifting that our descendants? Several writers have proposed breaking political impasse funding mitigation through public debt. Critics attack such proposals as both unjust and infeasible. In fact, there is reason think some debt financing may be more equitable than placing whol...

Large-scale military actions on Ukraine’s territory have led to extraordinary challenges for budget policy. This study aims evaluate the policy of Ukraine and substantiate its strategic priorities in martial law. The paper used economic statistical methods assess ultimate indicators. It was determined that revenues decreased due recession, expenditures, primarily defense security, increased. In...

Much of the existing literature on social security has taken the extreme assumption that individuals have little or no altruism; this paper takes an opposite assumption that there is full two-sided altruism. When households insure members that belong to the same family line, privatizing social security can gain public support. In our benchmark model calibrated to the U.S. economy, privatization...

We develop a general equilibrium model in which households’ mortgage leverage is determined by supply and demand forces, where the price of credit impacts quantity households choose. Mortgages are supplied financial intermediaries, who offer menu contracts whose pricing varies with intermediaries’ equity capital. In model, growth for safe assets that replicates falling interest rates 2000s caus...

We analyze the nature of financial contracting when an entrepreneur can choose the specificity of investments and financial contracts are incomplete. Investing in projectspecific assets increases productivity but decreases liquidation value. This creates a strategic incentive to specialize assets to decrease the bargaining power of the financier when debt financing is used. By contrast, equity ...

This paper develops a simple signaling model whereby high valuation firm uses levels of investment, debt and dividends to convey information to the market regarding its valuation. Conditions are determined under which investment, debt and dividends are employed in a separating Nash equilibrium. Unlike many other signaling models where the source of asymmetric information concerns only the mean ...