IDEAS home Printed from https://ideas.repec.org/a/spr/inrvec/v72y2025i2d10.1007_s12232-025-00493-y.html
   My bibliography  Save this article

Which debt belongs to the state and which debt belongs to the market? Comparative new evidence several capitalist regimes

Author

Listed:
  • İbrahim Özmen

    (Selcuk University)

Abstract

This study discovers the relationship between household/private and state debt using a critical approach and provides robust econometric evidence. While the connections between state and household debt manifest through both symmetrical and asymmetrical mechanisms, these mechanisms also comprise different subcomponents. These differences emerge from the temporal harmonization of debt dynamics. The analysis employs unit root tests, revealing multiple structural breaks, alongside hidden cointegration tests and spectral Granger causality test. The findings indicate a trade-off between household/private and state debt. Based on these insights, this study introduces two novel concepts to distinguish between symmetric and asymmetric relationships: debrolling referring to asymmetric mechanisms, and rerolling describing symmetric mechanisms. These concepts contribute to a broader understanding of debt substitution dynamics and provide a fresh perspective on the interaction between state and household indebtedness.

Suggested Citation

  • İbrahim Özmen, 2025. "Which debt belongs to the state and which debt belongs to the market? Comparative new evidence several capitalist regimes," International Review of Economics, Springer;Happiness Economics and Interpersonal Relations (HEIRS), vol. 72(2), pages 1-34, December.
    • Handle: RePEc:spr:inrvec:v:72:y:2025:i:2:d:10.1007_s12232-025-00493-y
    DOI: 10.1007/s12232-025-00493-y
    as

    Download full text from publisher

    File URL: http://link.springer.com/10.1007/s12232-025-00493-y
    File Function: Abstract
    Download Restriction: Access to the full text of the articles in this series is restricted.
    File URL: https://libkey.io/10.1007/s12232-025-00493-y?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to

    for a different version of it.

    More about this item

    Keywords

    ;
    ;
    ;
    ;
    ;

    JEL classification:

    • P16 - Political Economy and Comparative Economic Systems - - Capitalist Economies - - - Capitalist Institutions; Welfare State
    • H6 - Public Economics - - National Budget, Deficit, and Debt
    • G51 - Financial Economics - - Household Finance - - - Household Savings, Borrowing, Debt, and Wealth
    • E6 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:spr:inrvec:v:72:y:2025:i:2:d:10.1007_s12232-025-00493-y. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.