From foreign aid to domestic debt: essays on government financing in developing economies

Thesis

The first essay [“Twin Deficits and Free Lunches: Macroeconomic Outcomes In Anticipation of Foreign Aid”] concerns itself with situations in which private agents anticipate a future windfall (free lunch) that will help service the debt resulting from a present fiscal expansion (implemented via a temporary tax cut). Such expectations of a windfall can arise in the context of natural resource discoveries or, more interestingly, due to perceptions by agents in “too important to fail” c...

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Authors: Abbas, S

• Publication date: 2014
• DOI: 10.5287/ora-zoqnqay19
• Type of award: DPhil
• Level of award: Doctoral
• Awarding institution: University of Oxford
• Language: English
• Keywords: Public debt; domestic debt; commercial banks; CAPM; too-important-to-fail; portfolio choice; twin deficit; foreign aid; credit constraints; financial development; debt sustainability; government securities; bank regulation; overlapping generations; crowding out; government finance; current account; economic growth
• Subjects: Financial economics; Macro and international economics; Economics; Development economics