Internal debt
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Reducing debt improves psychological functioning and changes decision-making in the poor Open
Significance The impact of chronic debt on the poor is psychological, not just financial. We hypothesize that chronic debt impairs psychological functioning and decision-making, contributing to the poverty trap. This is because debt is not…
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Venture Debt Financing: Determinants of the Lending Decision Open
Research summary Venture debt lending is a form of start‐up financing that lies at the intersection of venture capital and traditional debt. We analyze the lending decision criteria of 55 senior U.S. venture debt lenders (VDLs) using a dis…
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The impact of government debt on economic growth in Nigeria Open
This study investigated the effect of government debt on Nigeria's economic growth using annual data from 1980 to 2018 and the Autoregressive Distributed Lag technique. The empirical results showed that external debt constituted an impedim…
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The Effect of Government Debt and Other Determinants on Economic Growth: The Greek Experience Open
This study empirically investigates the relationship between economic growth and several factors (investment, private and government consumption, trade openness, population growth and government debt) in Greece, where imbalances persist se…
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The effect of external debt on economic growth in Sub-Saharan Africa Open
Purpose: This paper examines the effect of external debt on economic growth in Sub-Saharan Africa (SSA) in view of an upsurge in the level of external debt in many countries on the continent. Design/methodology/approach: The paper uses ann…
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Strategic Default, Debt Structure, and Stock Returns Open
This paper theoretically and empirically investigates how debt structure and strategic interaction among shareholders and debt holders in the event of default affect expected stock returns. The model predicts that expected stock returns ar…
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The role of environmental, social, and governance rating on corporate debt structure Open
This paper examines the impact of Environmental, Social, and Governance (ESG) rating on a firm's debt structure. We find that optimal (market and book) leverage ratios and information asymmetry are reduced when firms become ESG rated. More…
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The relationship between external debt and economic growth: empirical evidence from Ukraine and other emerging economies Open
The article examines the relationship between external debt and economic growth in emerging economies for the period 2006-2016. The authors used different econometric tools, e.g., ADL model and correlation analysis. The regression results …
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External debt and economic growth in Sub-Saharan Africa: Does governance matter? Open
This study empirically examined the impact of external debt on economic growth. Also, the interactions of governance, external debt and external debt volatility were further investigated with emphasize on the interective effect of governan…
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Can public debt stimulate public investment and economic growth in South Africa? Open
South Africa is a developing country faced with diverse challenges like high unemployment, poverty, inequality and low economic growth. In an attempt to address these issues, government can embark on borrowing and incur public debt. Countr…
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Public Debt, Economic Growth and the Real Interest Rate: A Panel VAR Approach to EU and OECD Countries Open
We investigate the causal relationship between public debt ratios and economic growth rates for 31 EU and OECD countries. We estimate a panel VAR model that incorporates the long-term real interest rate on government bonds as a vehicle to …
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Debt, distress, dispossession: towards a critical political economy of Africa’s financial dependency Open
SUMMARY With China's rise to become Africa's largest bilateral creditor, much research has focused on an evidence-based critique of the politicised narrative about China's supposed ‘debt trap diplomacy'. At a more fundamental level, this d…
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Macroeconomic Risk and Debt Overhang* Open
– Since corporate debt tends to be riskier in recessions, transfers from equity holders to debt holders that accompany corporate decisions also tend to concentrate in recessions. Such systematic risk exposures of debt overhang have importa…
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Public Debt, Public Investment and Economic Growth in Mexico Open
The primary objective of this article is to answer the following two research questions: has the growing public debt of state governments promoted increased public investment? If the answer is yes, then does any increase in public investme…
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Determinants of the Public Debt in the Eurozone and Its Sustainability Amid the Covid-19 Pandemic Open
Different economic studies have been concentrated on specific and/or isolated factors to explain public debt evolution. In this article we have developed an integrated viewpoint based on financial, social and governance or institutional fa…
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Public debt and economic growth – economic systems matter Open
Most studies on the relationship between public debt and economic growth implicitly assume homogeneous debt effects across their samples. We –in accordance with recent literature– challenge this view and state that there likely is a great …
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Growth Effect of Public Debt: The Role of Government Effectiveness and Trade Balance Open
A growing number of recent works support the idea of debt threshold level (turning point), above which debt starts reducing economic growth. However, estimated threshold varies sharply across studies and gives a little insight into what th…
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Sovereign Debt Restructurings Open
Sovereign debt crises involve debt restructurings characterized by a mix of face value haircuts and maturity extensions. The prevalence of maturity extensions has been hard to reconcile with economic theory. We develop a model of endogenou…
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Public debt and pro-poor economic growth evidence from South Asian countries Open
Over the years, most developing countries have failed to collect enough revenues to finance their budgets. As a result, they face the problem of twin deficits and are relying on public external and domestic debt to finance their developmen…
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Debt and Overindebtedness: Psychological Evidence and its Policy Implications Open
This paper reviews psychological studies of real‐life use of credit, debt, and overindebtedness, with the aim of making policy recommendations that could reduce the damage done by debt to both individuals and society. The overall level of …
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The constraint on public debt when r < g but g < m Open
With real interest rates below the growth rate of the economy, but the marginal product of capital above it, the public debt can be lower than the present value of primary surpluses because of a bubble premia on the debt. The government ca…
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r minus g negative Open
Contrary to the traditional assumption of interest rates on government debt exceeding economic growth, negative interest-growth differentials have become prevalent since the global financial crisis. As these differentials are a key determi…
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Debt sustainability of states in India: An assessment Open
The debt position of the state governments in India, which deteriorated sharply between 1997–1998 and 2003–2004, has witnessed significant improvement since 2004–2005. Debt sustainability analysis based on empirical estimation of inter-tem…
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Strategic Debt Service Open
When firms experience financial distress, equity holders may act strategically, forcing concessions from debtholders and paying less than the originally contracted interest payments. This article incorporates strategic debt service in a st…
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Debt Structure Open
We review the literature on debt structure, which is a central element in a firm's capital structure. We first survey both theoretical and empirical research pertaining to debt characteristics—maturity and priority—and debt types—bank loan…
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Debt Revenue and the Sustainability of Public Debt Open
While public debt has risen in the last two decades, the return that it offers to investors has fallen, especially relative to the return on private investment. This creates a revenue for the government as the supplier of the special servi…
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The macroeconomic effects of official debt restructuring: evidence from the Paris Club Open
We study 422 episodes of official sector debt restructuring and their macroeconomic effects, using a novel data set of Paris Club treatments. We find that while official sector debt relief can significantly affect growth and external perfo…
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Local currency denominated sovereign loans: a portfolio approach to tackle moral hazard and provide insurance Open
This paper studies how the currency composition of public debt affects debt sustainability in developing countries. We show empirically that the debt-to-GDP ratio tends to grow at a faster rate when countries with a high share of foreign c…
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The Decline of Secured Debt Open
The share of secured debt issued (as a fraction of total corporate debt) declined steadily in the United States over the twentieth century.This stems partly from financial development giving creditors greater confidence that high quality b…
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Does public debt crowd out corporate investment?: international evidence Author Open
Using data for advanced and emerging economies, we show that there is a negative correlation between public debt and corporate investment. Industry-level regressions show that high levels of government debt are particularly damaging for in…