Managing the UK National Debt 1694-2018

• 成果类型: Article
• 署名作者: Ellison, Martin; Scott, Andrew
• 署名单位: University of Oxford; Centre for Economic Policy Research - UK; University of London; London Business School
• 刊物名称: AMERICAN ECONOMIC JOURNAL-MACROECONOMICS
• ISSN/ISSBN: 1945-7707
• DOI: 10.1257/mac.20180263
• 发表日期: 2020
• 页码: 227-257
• 关键词: optimal maturity; yield; COSTS

摘要

We examine UK debt management using a new monthly dataset on the quantity and market price of every individual bond issued by the government since 1694. Our bond-by-bond dataset identifies variations in the market value of debt and so captures investors' one-period holding returns, which is the cost of debt management in the government's intertemporal budget constraint. We find a substantial cost advantage in favor of issuing short bonds, even when considering some of the operational risks implied by cash flows and gross redemptions.