Journal of Finance and Accounting

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Econometric Analysis of Local Government Investment Efficiency and the Debt Risk Based on the DSGE Model

Received: 09 February 2017    Accepted:     Published: 01 March 2017
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Abstract

This paper examines the relationship between the efficiency of government investment and the debt risk from a theoretical perspective. By building a DSGE model, we introduced the impact of government financial investment, and investigated the change of debt risk under different government investment efficiency. From the model, we observed a obvious reverse effect bwteen the the government investment efficiency and debt risk. Finally, according to research conclusions, we put forward some Suggestions.

DOI 10.11648/j.jfa.20170501.15
Published in Journal of Finance and Accounting (Volume 5, Issue 1, January 2017)
Page(s) 56-60
Creative Commons

This is an Open Access article, distributed under the terms of the Creative Commons Attribution 4.0 International License (http://creativecommons.org/licenses/by/4.0/), which permits unrestricted use, distribution and reproduction in any medium or format, provided the original work is properly cited.

Copyright

Copyright © The Author(s), 2024. Published by Science Publishing Group

Keywords

DSGE Model, Local Government Debt, Government Investment Efficiency, Government Debt Risk

References
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[2] Christiano L J, Eichenbaum M, Evans C L. Nominal rigidities and the dynamic effects of a shock to monetary policy [J]. Journal of political Economy. 2005, 113 (1): 1-45.
[3] Erceg C J, Henderson D W, Levin A T. Optimal monetary policy with staggered wage and price contracts [J]. Journal of monetary Economics. 2000, 46 (2): 281-313.
[4] Greiner A, Wendroff J H. Electrospinning: A Fascinating Method for the Preparation of Ultrathin Fibers [J]. Cheminform. 2007, 38 (42): 5670-5703.
[5] Leeper E M, Plante M, Traum N. Dynamics of fiscal financing in the United States [J]. Journal of Econometrics. 2010, 156 (2): 304-321.
[6] Prescott E C. Why do Americans work so much more than Europeans? [R]. National Bureau of Economic Research, 2004.
[7] Reinhart C M, Rogoff K S. Growth in a time of debt (digest summary) [J]. American Economic Review. 2010, 100 (2): 573-578.
[8] Schwarzmüller T, Wolters M H. The short-and long-run effects of fiscal consolidation in dynamic general equilibrium [C]. 2014.
[9] Zhong-xia Jin. Real Interest Rates,Real Wages and Economic Restructuring—Analysis Based on DSGE [J]. China Economist, 2014,(02):46-56.
[10] Trabandt M, Uhlig H. The Laffer curve revisited [J]. Journal of Monetary Economics. 2011, 58 (4): 305-327.
Author Information
  • Tianjin University of Finance and Economics, Tianjin, P. R. China

  • Central University of Finance and Economics, Beijing, P. R. China

  • Central University of Finance and Economics, Beijing, P. R. China

  • Renmin University of China, Beijing, P. R. China

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  • APA Style

    Zhi-qi Zhu, Ke Gao, Tao Wang, Nan Bai. (2017). Econometric Analysis of Local Government Investment Efficiency and the Debt Risk Based on the DSGE Model. Journal of Finance and Accounting, 5(1), 56-60. https://doi.org/10.11648/j.jfa.20170501.15

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    ACS Style

    Zhi-qi Zhu; Ke Gao; Tao Wang; Nan Bai. Econometric Analysis of Local Government Investment Efficiency and the Debt Risk Based on the DSGE Model. J. Finance Account. 2017, 5(1), 56-60. doi: 10.11648/j.jfa.20170501.15

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    AMA Style

    Zhi-qi Zhu, Ke Gao, Tao Wang, Nan Bai. Econometric Analysis of Local Government Investment Efficiency and the Debt Risk Based on the DSGE Model. J Finance Account. 2017;5(1):56-60. doi: 10.11648/j.jfa.20170501.15

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  • @article{10.11648/j.jfa.20170501.15,
      author = {Zhi-qi Zhu and Ke Gao and Tao Wang and Nan Bai},
      title = {Econometric Analysis of Local Government Investment Efficiency and the Debt Risk Based on the DSGE Model},
      journal = {Journal of Finance and Accounting},
      volume = {5},
      number = {1},
      pages = {56-60},
      doi = {10.11648/j.jfa.20170501.15},
      url = {https://doi.org/10.11648/j.jfa.20170501.15},
      eprint = {https://download.sciencepg.com/pdf/10.11648.j.jfa.20170501.15},
      abstract = {This paper examines the relationship between the efficiency of government investment and the debt risk from a theoretical perspective. By building a DSGE model, we introduced the impact of government financial investment, and investigated the change of debt risk under different government investment efficiency. From the model, we observed a obvious reverse effect bwteen the the government investment efficiency and debt risk. Finally, according to research conclusions, we put forward some Suggestions.},
     year = {2017}
    }
    

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    T1  - Econometric Analysis of Local Government Investment Efficiency and the Debt Risk Based on the DSGE Model
    AU  - Zhi-qi Zhu
    AU  - Ke Gao
    AU  - Tao Wang
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    JO  - Journal of Finance and Accounting
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    UR  - https://doi.org/10.11648/j.jfa.20170501.15
    AB  - This paper examines the relationship between the efficiency of government investment and the debt risk from a theoretical perspective. By building a DSGE model, we introduced the impact of government financial investment, and investigated the change of debt risk under different government investment efficiency. From the model, we observed a obvious reverse effect bwteen the the government investment efficiency and debt risk. Finally, according to research conclusions, we put forward some Suggestions.
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