TY  - BOOK
AU  - Ardagna,Silvia
AU  - Caselli,Francesco
AU  - Lane,Timothy
ED  - National Bureau of Economic Research.
TI  - Fiscal Discipline and the Cost of Public Debt Service: Some Estimates for OECD Countries 
T2  - NBER working paper series
PY  - 2004///
CY  - Cambridge, Mass.
PB  - National Bureau of Economic Research
N1  - September 2004; Hardcopy version available to institutional subscribers
N2  - We use a panel of 16 OECD countries over several decades to investigate the effects of government debts and deficits on long-term interest rates. In simple static specifications, a one-percentage-point increase in the primary deficit relative to GDP increases contemporaneous long-term interest rates by about 10 basis points. In a vector autoregression (VAR), the same shock leads to a cumulative increase of almost 150 basis points after 10 years. The effect of debt on interest rates is non-linear: only for countries with above-average levels of debt does an increase in debt affect the interest rate. World fiscal policy is also important: an increase in total OECD-government borrowing increases each country's interest rates. However, domestic fiscal policy continues to affect domestic interest rates even after controlling for worldwide debts and deficits
UR  - https://www.nber.org/papers/w10788
UR  - http://dx.doi.org/10.3386/w10788
ER  -