We investigate the relationship between household debt and health outcomes for OECD countries over the period 1995 to 2012. Using a dataset of aggregated, standardized and objective measures of household debt and health outcomes, we estimate an instrumental variable (GMM) model in order to deal with endogeneity and reverse causality concerns between health and debt. We find that higher househol...

The Interactions between Debt and Currency Crises – Common Causes or Contagion? In contrast to the well-known twin currency and banking crises the literature has so far neglected a second type of twin crises, the simultaneous occurrence of currency and debt crises. The decision of a government to devalue and/or to default is closely interlinked through the government’s intertemporal budget cons...

Technical debt refers to the phenomena of taking a shortcut to achieve short term development gain at the cost of increased maintenance effort in the future. The concept of debt, in particular, the cost of debt has not been widely studied. Therefore, the goal of this paper is to determine ways to measure the ‘interest’ on the debt and use these measures to see how much of the technical debt inc...

We studied systemic risk in European sovereign debt markets before and after the onset of the Greek debt crisis, taking the conditional value-at-risk (CoVaR) as a systemic risk measure, characterized and computed using copulas. We found that, before the debt crisis, sovereign debt markets were all coupled and systemic risk was similar for all countries. However, with the onset of the Greek cris...

This paper analyzes debt maturity structure for a borrower in a setting where creditors are faced with strategic uncertainty. In contrast to the existing literature, I examine the e¤ects of strategic uncertainty on the issuance of debt in an environment where face values of debt are determined endogenously and directly a¤ect investors’ rollover decisions. I …nd that strategic uncertainty has a ...

The tendency of countries to accumulate public debt has been rationalized in models of political disagreement and lack of commitment. We analyze in a benchmark model how the evolution of public debt is affected by lack of commitment per se. While commitment introduces indeterminacy in the level of debt, lack of commitment creates incentives for debt to converge to specific levels. One of the le...

Recently much attention has been given to the idea of reducing the debt of developing countries through a "menu approach" of schemes that attempt to harness the discounts on debt in the secondary market. This paper, after reviewing the rationale for the orthodox strategy of concerted lending and the case for debt forgiveness, examines the logic behind several market-based debt reduction schemes...

Changes in aggregate household debt in the United States may contain information about the current state of the economy and may influence its future path. When a large share of household income is devoted to debt repayment, households have fewer funds available to purchase goods and services. Households with high debt levels relative to income are also more likely to default on their obligation...

The knowledge on technical debt and its management has increased in recent years. The interest of academia and industry has generated many viewpoints on technical debt. Technical debt management consists of technical and organizational aspects, which make it a challenge in software development. To increase technical debt visibility and manageability, new processes must be developed and thorough...

Public debt management, in the sense of manipulation of a given stock, has been a policy problem at least since World War II. During this time, dissatisfaction with the handling of the debt has surfaced sporadically. A feeling that the average maturity of the debt should be longer than it was has been pervasive. But no generally accepted philosophy of the public debt management has emerged. Var...