This paper explores the impact of nationally held public debt and foreign debt on the US economy. It has tried to define the nationally held public debt as an additional asset for the private sector by insuring a source of future saving, an increase in investment capacity and a source of increase in demand. A linear regression analysis of 39 observations from 1970 to 2014, using different lengt...

The current financial and economic crisis is the worst since the stock-market crash of 1929. As with every complex phenomenon, a mixture of causes have been put forward: the housing-market bubble, risky mortgage loans, ‘toxic’ financial products, high personal and corporate debts, inaccurate credit ratings, and much more. The shockwaves have spread so rapidly and hit so hard that entire banking...

The relatively high level of Nigeria’s external indebtedness, and rising debt burden which has serious implications on the country’s development and debt sustainability in terms of ability to pay has led to continued deterioration in Nigeria’s economic performance. This study examines the extent to which Nigeria’s external debt relates to indices of ability to pay in order to ascertain the sust...

We propose a model for the correlation structure of reference portfolios of collateralized debt obligations. The model is capable of exhibiting typical characteristics of the implied correlation smile (skew, respectively) observed in the market. Moreover, it features a simple economic interpretation and is computationally inexpensive as it naturally integrates into the factor model framework.

This paper examines the impact of local tax rates and capital market conditions on the level and composition of borrowing by foreign affiliates of American multinational corporations. The evidence indicates that 10 percent higher local tax rates are associated with 2.8 percent higher debt/asset ratios of American-owned affiliates, and that borrowing from related parties is particularly sensitiv...

he improvements in development in Latin America and the Caribbean observed from the 1950s through the early 1970s have started to decline. Principal factors include growing external debt, the world trade imbalance due to the increase in the price of oil and manufactured products and the decrease of primary products. This deterioration of socioeconomic conditions has increasingly and primarily a...

Global HIV control funding falls short of need. To maximize health outcomes, it is critical that national governments sustain reasonable commitments, and that international donor assistance be distributed according to country needs and funding gaps. We develop a country classification framework in terms of actual versus expected national domestic funding, considering resource needs and donor fi...

We study a dynamic stochastic general equilibrium model that features heterogeneous agents, incomplete risk sharing, and collateralized debts. Facing uninsurable income risks, households have a precautionary motive for saving and, at the aggregate level, they appear more patient than the entrepreneurs. The relative patience of the households depresses the average loan rate so that the entrepren...