With age comes immaturity: Do countries with older populations issue shorter maturity debt?

Gonca Senel and Mark Wright

Economics Letters, 2021, vol. 209, issue C

Abstract: Recent work has found that countries with older populations face steeper yield curves and issue shorter maturity debt than do younger countries. We reexamine these findings using a new database of public debt maturity and yields for OECD countries. We first show that the behavior of eurozone countries in the pre-euro period drives these results. Next, including more recent data from the post-euro period, we show that the relationship between population age, maturity, and yield curve slopes disappears. This finding is robust to excluding high-credit-risk countries. Last, we show that these patterns reemerge after the European debt crisis, suggesting that eurozone capital markets have resegmented.

Keywords: Public debt; Debt maturity; Aging; Sovereign default; Eurozone (search for similar items in EconPapers)
JEL-codes: E43 G11 H63 (search for similar items in EconPapers)
Date: 2021
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Persistent link: https://EconPapers.repec.org/RePEc:eee:ecolet:v:209:y:2021:i:c:s0165176521003773

DOI: 10.1016/j.econlet.2021.110100

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