Deficits and Real Interest Rates: A Note Extending the Hoelscher Model

Richard Cebula () and Gerald Scott

MPRA Paper from University Library of Munich, Germany

Abstract: This study adopts a loanable funds model to investigate the impact of budget deficits in the U.S. on long term real interest rates. The study investigates both ex post real 10 year Treasury note yields and ex post real 20 year Treasury bond yields. The study period runs from 1955 through 1987, using quarterly data. Two stage least squares estimations reveal that budget deficits did indeed raise these ex post real long term interest rate yields.

Keywords: budget deficits; ex post real long term interest rates; two stage least squares estimations (search for similar items in EconPapers)
JEL-codes: E31 E43 G12 H62 (search for similar items in EconPapers)
Date: 1990-02-05
References: View references in EconPapers View complete reference list from CitEc
Citations:

Published in The Indian Journal of Economics 4.71(1991): pp. 519-522

Downloads: (external link)
https://mpra.ub.uni-muenchen.de/54608/1/MPRA_paper_54608.pdf original version (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:pra:mprapa:54608

Access Statistics for this paper

More papers in MPRA Paper from University Library of Munich, Germany Ludwigstraße 33, D-80539 Munich, Germany. Contact information at EDIRC.
Bibliographic data for series maintained by Joachim Winter ().