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Investigating shifts in public debt management behaviour in France

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  • Christophe Schalck

    (IPAG Business School)

Abstract

The aim of this paper is to identify some shifts in the behaviour of public debt managers in France. The behaviour is described using a reaction function and the documented impact of cost and risk considerations on the share of short-term debt. Using a Markov switching approach, distinguishing normal versus crisis episodes over the period of 1998-2015, endogenous shifts in public debt behaviour are identified. The results show non-monotonicity in French public debt management behaviour. In the crisis regime, findings show larger responses to changes in interest rates and in the liquidity of the long-term bond market.

Suggested Citation

  • Christophe Schalck, 2019. "Investigating shifts in public debt management behaviour in France," Economics Bulletin, AccessEcon, vol. 39(2), pages 1656-1665.
    • Handle: RePEc:ebl:ecbull:eb-18-00879
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    File URL: http://www.accessecon.com/Pubs/EB/2019/Volume39/EB-19-V39-I2-P156.pdf
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    References listed on IDEAS

    as
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    Cited by:

    1. Casalin, Fabrizio & Cerniglia, Floriana & Dia, Enzo, 2023. "Stock-flow adjustments, public debt management and interest costs," Economic Modelling, Elsevier, vol. 129(C).

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    More about this item

    Keywords

    Public debt; debt instruments; Markov switching model; crisis;
    All these keywords.

    JEL classification:

    • E6 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook
    • H6 - Public Economics - - National Budget, Deficit, and Debt

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