Download This PaperLong-Term Interest Rates and Public Debt Maturity
10 Pages Posted: 2 Oct 2013
Date Written: September 30, 2013
Abstract
For a sample of sixteen OECD countries over the period 1980-2007 we show that, for given debt-GDP ratio, an increase in the maturity of the public debt by one year lowers its long-term interest rate by around 20-30 basis points. This effect is stronger for countries with higher average inflation or debt.
Keywords: debt, maturity, long-term interest rates, inflation, OECD
JEL Classification: E430, E440, H620, H630, H680
Suggested Citation: Suggested Citation
Sakalauskaite, Ieva and Beetsma, Roel M. W. J. and Giuliodori, Massimo, Long-Term Interest Rates and Public Debt Maturity (September 30, 2013). CESifo Working Paper Series No. 4408, Available at SSRN: https://ssrn.com/abstract=2334681 or http://dx.doi.org/10.2139/ssrn.2334681
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