Fiscal limits and sovereign default risk in Japan

Hideaki Matsuoka

Journal of the Japanese and International Economies, 2015, vol. 38, issue C, 13-30

Abstract: It is widely known that Japan has the highest debt-to-GDP ratio among OECD countries. If Japan’s national debt continues to balloon, fiscal crisis may occur in the future. This paper develops a closed economy model with defaultable government debt and conducts a simulation to investigate future sovereign debt risk.

Keywords: The distribution of fiscal limits; Sovereign risk premium (search for similar items in EconPapers)
JEL-codes: E62 H63 (search for similar items in EconPapers)
Date: 2015
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Citations: View citations in EconPapers (6)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:jjieco:v:38:y:2015:i:c:p:13-30

DOI: 10.1016/j.jjie.2015.05.003

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