Arbeitspapier
Revisiting the public debt stability condition: Rethinking the Domar condition
This paper revisits the fiscal sustainability condition proposed by Domar (1944). The Domar condition is derived from the government budget constraint and thus focuses on the supply side of the government bond. By considering the demand for the government bond, this paper finds that public debt sustainability depends on interest rate sensitivity to changes in government bond supply and demand. Data shows that the prediction of our model on public debt sustainability is consistent with the cases of Greece and Japan.
- Language
-
Englisch
- Bibliographic citation
-
Series: ADBI Working Paper Series ; No. 1141
- Classification
-
Wirtschaft
General Aggregative Models: Keynes; Keynesian; Post-Keynesian
Fiscal Policy
National Debt; Debt Management; Sovereign Debt
- Subject
-
Domar condition
fiscal sustainability
demand for government bonds
- Event
-
Geistige Schöpfung
- (who)
-
Yoshino, Naoyuki
Miyamoto, Hiroaki
- Event
-
Veröffentlichung
- (who)
-
Asian Development Bank Institute (ADBI)
- (where)
-
Tokyo
- (when)
-
2020
- Handle
- Last update
-
10.03.2025, 11:43 AM CET
Data provider
This object is provided by:
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. If you have any questions about the object, please contact the data provider.
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. If you have any questions about the object, please contact the data provider.
Object type
- Arbeitspapier
Associated
- Yoshino, Naoyuki
- Miyamoto, Hiroaki
- Asian Development Bank Institute (ADBI)
Time of origin
- 2020
Other Objects (12)
The "highway effect" on public finance: Case of the STAR highway in the Philippines
Effectiveness of the easing of monetary policy in the Japanese economy, incorporating energy prices
An impact evaluation of investment in infrastructure: The case of the railway connection in Uzbekistan
Empirical analysis of global oil price determinants at the disaggregated level over the last two decades
Optimal dynamic path during the transition of exchange rate regime: Analysis of the People's Republic of China (PRC), Malaysia, and Singapore
Three arrows of "Abenomics" and the structural reform of Japan: Inflation targeting policy of the Central Bank, fiscal consolidation, and growth strategy
Effects of infrastructure projects on government revenue: The case of expressway projects in the Northern Midland and Mountainous area of Viet Nam
Reforming the fee structure of investment trusts to increase demand
The role of SMEs in Asia and their difficulties in accessing finance
Decline in oil prices and the negative interest rate policy in Japan
How does population aging affect the effectiveness of monetary and fiscal policies?
Causes and remedies for Japan's long-lasting recession: Lessons for the People's Republic of China
The "highway effect" on public finance: Case of the STAR highway in the Philippines
Effectiveness of the easing of monetary policy in the Japanese economy, incorporating energy prices
An impact evaluation of investment in infrastructure: The case of the railway connection in Uzbekistan
Empirical analysis of global oil price determinants at the disaggregated level over the last two decades
Optimal dynamic path during the transition of exchange rate regime: Analysis of the People's Republic of China (PRC), Malaysia, and Singapore
Three arrows of "Abenomics" and the structural reform of Japan: Inflation targeting policy of the Central Bank, fiscal consolidation, and growth strategy
Effects of infrastructure projects on government revenue: The case of expressway projects in the Northern Midland and Mountainous area of Viet Nam
Reforming the fee structure of investment trusts to increase demand
The role of SMEs in Asia and their difficulties in accessing finance
Decline in oil prices and the negative interest rate policy in Japan
How does population aging affect the effectiveness of monetary and fiscal policies?
Causes and remedies for Japan's long-lasting recession: Lessons for the People's Republic of China
The "highway effect" on public finance: Case of the STAR highway in the Philippines
Effectiveness of the easing of monetary policy in the Japanese economy, incorporating energy prices
An impact evaluation of investment in infrastructure: The case of the railway connection in Uzbekistan
Empirical analysis of global oil price determinants at the disaggregated level over the last two decades
Optimal dynamic path during the transition of exchange rate regime: Analysis of the People's Republic of China (PRC), Malaysia, and Singapore
Three arrows of "Abenomics" and the structural reform of Japan: Inflation targeting policy of the Central Bank, fiscal consolidation, and growth strategy
Effects of infrastructure projects on government revenue: The case of expressway projects in the Northern Midland and Mountainous area of Viet Nam
Reforming the fee structure of investment trusts to increase demand
The role of SMEs in Asia and their difficulties in accessing finance
Decline in oil prices and the negative interest rate policy in Japan
How does population aging affect the effectiveness of monetary and fiscal policies?