Debt Maturity: Is Long-Term Debt Optimal?
Laura Alfaro; Fabio Kanczuk;
- jel: jel:E62 | jel:F34 | jel:H63
We model and calibrate the arguments in favor and against short-term and long-term debt. These arguments broadly include: maturity premium, sustainability, and service smoothing. We use a dynamic equilibrium model with tax distortions and government outlays uncertainty,... View more