Re-Thinking Debt Burden: Going with the Flow?
Vipul Bhatt and
Additional contact information
Vipul Bhatt: James Madison University
Eastern Economic Journal, 2019, vol. 45, issue 2, No 2, 179-203
Abstract This paper provides an empirical framework for computing a flow measure of public debt called the debt-to-duration ratio. A ratio of this measure to GDP (DD-to-GDP) is a unit-free measure of debt burden interpreted as the percentage of income for debt service or repayment. Using monthly US Treasury data (1997–2018), we compare this measure to the debt-to-GDP ratio. The DD-to-GDP ratio is an alternative for use in discussions about sustainability of current levels of debt. An empirical test of the relationship between rising debt ratios and growth shows that duration has an important counteracting relationship with higher debt lowering growth but longer duration being associated with higher growth in the medium term.
Keywords: Debt; Fiscal policy; Duration; Interest rate; Debt management (search for similar items in EconPapers)
JEL-codes: E62 E66 E6 (search for similar items in EconPapers)
References: View references in EconPapers View complete reference list from CitEc
Citations: Track citations by RSS feed
Downloads: (external link)
http://link.springer.com/10.1057/s41302-018-0113-x Abstract (text/html)
Access to full text is restricted to subscribers.
Working Paper: Re-thinking debt burden: Going with the Flow? (2014)
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:pal:easeco:v:45:y:2019:i:2:d:10.1057_s41302-018-0113-x
Ordering information: This journal article can be ordered from
Access Statistics for this article
Eastern Economic Journal is currently edited by Allan Zebedee and Cynthia Bansak
More articles in Eastern Economic Journal from Palgrave Macmillan, Eastern Economic Association Contact information at EDIRC.
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().