Public debt and financial development

• 成果类型: Article
• 署名作者: Hauner, David
• 署名单位: International Monetary Fund
• 刊物名称: JOURNAL OF DEVELOPMENT ECONOMICS
• ISSN/ISSBN: 0304-3878
• DOI: 10.1016/j.jdeveco.2008.02.004
• 发表日期: 2009
• 页码: 171-183
• 关键词: public debt; financial development; Bank efficiency; bank profitability

摘要

We examine the role of public debt in financial development. The literature has highlighted its Supportive role through providing collateral and benchmark. We contrast this safe asset view to a lazy banks view: developing banking sectors that lend mainly to the public sector may develop more slowly, because it could make banks profitable but inefficient. Results from country-level and bank-level regressions are more supportive of the lazy banks view. but the safe asset view seems to play a role at moderate levels of public debt held by banks. There is also evidence of a harmful interaction between public debt and financial repression. (C) 2008 Published by Elsevier B.V.