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Public Safe Assets Determination

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  • Ly-Dai, Hung

Abstract

We characterize the safety of public debt by one cross-section sample of 160 economies. For demand analysis, the public debt is safer for larger financial market size, higher financial development level, lower inflation rate and greater political stability. For sup- ply analysis, by a huger debt stock, the safety improves in economies with high income per capita but deteriorates in economies with low income per capita. The results are robust for Instrument-Variable regressions.

Suggested Citation

  • Ly-Dai, Hung, 2018. "Public Safe Assets Determination," MPRA Paper 90237, University Library of Munich, Germany, revised Oct 2018.
    • Handle: RePEc:pra:mprapa:90237
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    References listed on IDEAS

    as
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    More about this item

    Keywords

    Safe Assets; Credit Ratings; Financial Development;
    All these keywords.

    JEL classification:

    • F21 - International Economics - - International Factor Movements and International Business - - - International Investment; Long-Term Capital Movements
    • F31 - International Economics - - International Finance - - - Foreign Exchange
    • F41 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - Open Economy Macroeconomics

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